Question

if consumer sovereignty is considered greatest in a system of pure competition, why is sovereignty still limited?
consumers still rely on producers set prices
few products are actually sold on the basis of pure competition.
choices are driven by price when goods are identical.
limited price variations restrict actual choice

Explanation:

To determine why consumer sovereignty is limited even in pure competition, we analyze each option:

• "Consumers still rely on producers' set prices": In pure competition, prices are determined by market forces (supply - demand), not producers setting prices arbitrarily, so this is incorrect.
• "Few products are actually sold on the basis of pure competition": Pure competition is a theoretical market structure. In reality, most markets don't operate under pure competition (e.g., many have monopolistic competition, oligopolies, etc.). So even though pure competition maximizes consumer sovereignty in theory, the fact that few real - world markets are purely competitive limits actual consumer sovereignty.
• "Choices are driven by price when goods are identical": In pure competition, goods are homogeneous, and price - driven choice is part of consumer sovereignty, not a limitation of it.
• "Limited price variations restrict actual choice": In pure competition, price is determined by the market, and price variations are due to supply - demand shifts. This is not the main reason for limited consumer sovereignty in the context of pure competition's theoretical maximum.

Answer:

B. Few products are actually sold on the basis of pure competition.