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Question 81 / 96:  In what sense do consumers—rather than the "captains of industry"—guide the production decisions in a market economy?
Answer: 

With their spending decisions, consumers provide guidance to entrepreneurs, to the extent that they allow themselves to be steered by considerations of (monetary) profit.

It is the spending of smokers that leads farmers to plant tobacco.
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Capitalism: The Market Economy

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Attribution:  Dr. Robert P. Murphy, Lessons for the Young Economist. (Mises Institute), http://mises.org/document/6215/Lessons-for-the-Young-Economist (Accessed 04 April, 2014). License: Creative Commons BY
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