Why may government impose price control in an economy?
- To protect consumers from exploitation.
- To protect producers from exploitation.
- To maintain price stability/ control inflation.
- To increase production/ output/ economic growth
- To make commodities available to all groups of people in the economy.
- To establish industrial peace where price/reduce labour unrest/strike.
- To control / monopoly power.
- To enable producers, realize stable incomes i.e. minimum price.
- To control the production and consumption of undesirable products I harmful products.
- To reduce income inequality / wage differential
- To win political support from the masses
- To help the economy off-set (recover from) an economic depression.
CATEGORIES Economics
TAGS Dr. Bbosa Science
