question_answer

Explain the causes of the price rise. Why is there's need for regulating prices?                  [Foreign 2004]

Answer:

Refer to Ans. 6 (3 Marks).

Need for Regulating Price: Sometimes, traders whose main aim is to earn more profit, raise the prices by illegal ways. If there is no increase in wage for workers who are also consumers in the market, they cannot buy goods. When these goods happen to be essentials such as wheat, rice, milk. etc., this creates problem for the people. This necessitates the need for regulation of traders and keeping a close watch on them by the government.