Question : Which factor affecting price determination is highlighted in the given statement?
Statement: It is also affected by price control by the government.
Option 1: Product cost
Option 2: Utility and demand of the product
Option 3: Extent of competition in the market
Option 4: Government and legal regulations
Answer (1)
20th Jan, 2024
Correct Answer: Government and legal regulations
Solution : Price is also affected by price control by the government. To protect public interest against unfare practices government can enter win and regulate the price of commodities. Government can declare a product as an essential product and regulate its price.
Hence, option D is correct.
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