Question

Price policy is

• A. in favour of consumer
• B. in favour of government
• C. in favour of product-manufacturer
• D. in favour of all

Hint:

Price policy should balance affordability for consumers and profitability for producers while ensuring stability in the economy.

Answer 1

The Correct Option is D

Step 1: What is price policy?
Price policy refers to the rules and principles that guide how prices of goods and services are set in the market.
Step 2: Why it must be balanced.
A good price policy should consider all stakeholders:
- Consumers: Affordable prices.
- Government: Price stability, no exploitation.
- Producers: Fair profit margins.
- Economy: Healthy competition and growth.
Step 3: Option analysis.
- (A) In favour of consumer: Incomplete, as producers must also be considered.
- (B) In favour of government: Wrong, price policy is not only about regulation.
- (C) In favour of manufacturer: Wrong, as exploitation of consumers may occur.
- (D) In favour of all: Correct, because a balanced policy protects everyone’s interests.
Step 4: Conclusion.
An ideal price policy works in favour of all—consumers, producers, and government.