Discuss the reasons why governments sometimes choose to control prices.

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Question

business economics

Answer 1

Answer #1

Ans. Government might sometimes choose to control prices because of the following reasons :

1) In order to protect the interest of poor people or consumers , government might initiate the price control ( Price Ceiling )

2) In order to protect the interest of farmers , government might initiate the Price controls ( Price Flooring ) .

3) In order to protect the interest of Workers , Government might initiate the Price Controls. ( Minimum Wages )

4) In order to protect the interests of poor people , Government might initiate price controls . ( Wage Subsidies )

5) In order to protect the interests of Small Businessmens , Government might initiate by using Price Flooring.

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Answer 2

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