Examine the defects of unregulated market and highlight the role of Market Committee in
ensuring fair play in the market.
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Unregulated markets are where supply and demand are either not regulated or if regulated it is only with minor restrictions
Explanation:
- Since raising profit is the biggest stimulus for businesses, they would try to cut costs unethically. The incentive to raise profit deliberately encourages dishonest actions in some circumstances.
- Goods/services which are not profitable will not be made or managed. Rural areas as such would have to endure.
- Yet large firms will dominate those markets where rivalry exists. Which helps retailers to raise their profits and by using manufacturers (by price reductions) and consumers (by charging higher prices).
- Wealth is "uevenly distributed" – a limited proportion of population is rich, but most of them live in poverty.
Role of Market Committee in Ensuring Fair Play in the Market
- An autonomous body composed of its representatives from many constituencies, such as merchants, farmers, local civic councils, etc., is a market council.
- An idealised system in which the government controls supply and demand mechanisms like who accesses the economy or costs.
- It facilitates trade among producers and sellers and at the same time safeguards farmers' rights.
- The purpose is to eliminate dangerous and unscrupulous practises, minimise manufacturing costs and provide services for producers in the industry.
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State the demerits of unregulated markets. Any three points - Brainly.in
https://brainly.in/question/10581374
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