Theory question 106
Price DeterminationSection B (answer four questions only from this section)
Highlight any five objectives of price controls.
Show the model answer
Model answer
To protect consumers from exploitation by producers or sellers (maximum prices).
To keep essential goods affordable to low-income earners.
To control inflation.
To protect producers, e.g. farmers, by guaranteeing minimum prices.
To prevent wide fluctuations in prices of goods such as farm produce.
To protect workers through minimum wages.
To limit the excess profits of monopolies.
Explanation
Mention both maximum and minimum price objectives.