article on rising prices
Answers
The rapid increase in prices is causing anxiety amongst the people of India. Price rise is a world wide phenomenon and India is no exception. Prices of everything are sky rocketing, even of the essential commodities like gas, pulses, sugar, edible oils, tea, food grains, petrol, etc. What causes price rise and what effect it has on the people?
When the total demand is greater than total supply of goods and services, it causes prices to rise. However, what causes the demand to increase? Economists have pointed out that factors, such as increase in disposable income, consumer spending, public expenditure, black money, etc. are responsible for exceeding demand. Similarly there are certain factors, such as less or slow production, natural calamities, artificial scarcities increase in export, etc., which are responsible for shortage of supply.
Price-rise affects different people differently. Although it may not have much affect on the flexible income group. However, maximum hardship is faced by those belonging to the fixed income group. It is so because their salaries and wages remain the same but the prices of goods and services continue to rise.
In order to curb the problem of price rise it should be the joint effort of the government and the public to control it. There should be more fair price shops, Kendriya Bhandar, Safal outlets, etc. where the common man can shop for quality goods at a nominal price.
Answer:
Presently the prices of essential commodities are skyrocketing causing much hardship to the common man.
The rapid increase in prices is causing anxiety amongst the people of India. Price rise is a world wide phenomenon and India is no exception. Prices of everything are sky rocketing, even of the essential commodities like gas, pulses, sugar, edible oils, tea, food grains, petrol, etc. What causes price rise and what effect it has on the people?
When the total demand is greater than total supply of goods and services, it causes prices to rise. However, what causes the demand to increase? Economists have pointed out that factors, such as increase in disposable income, consumer spending, public expenditure, black money, etc. are responsible for exceeding demand. Similarly there are certain factors, such as less or slow production, natural calamities, artificial scarcities increase in export, etc., which are responsible for shortage of supply.Price-rise affects different people differently. Although it may not have much affect on the flexible income group. However, maximum hardship is faced by those belonging to the fixed income group. It is so because their salaries and wages remain the same but the prices of goods and services continue to rise.
In order to curb the problem of price rise it should be the joint effort of the government and the public to control it. There should be more fair price shops, Kendriya Bhandar, Safal outlets, etc. where the common man can shop for quality goods at a nominal price.The Government and banks must keep a check on hoarding and black marketing and also stop repayment of public debt until price-rise is controlled within the economy.
As far as general public is concerned, they must reduce unnecessary expenditure and increase savings. This will reduce disposable income with the people and hence personal consumption expenditure.
In conclusion, it is evident that price-rise is a multi-headed monster, which must be defeated on time with proper measures to benefit not just the rich population, but the poor also.
Hope it helps!
Regards