Question

Explain any three factors responsible for exploitation of consumers

Answer 1

Three factors responsible for exploitation of consumers are as follow :-
• illiteracy is one of the major problem.
• limited supply of goods due to which shopkeeper sells these goods at high rate.
• lack of compitition in the market for good as a result consumer are being forced to buy certain product.

Answer 2

Answer:

The following factors are responsible for the consumer exploitation:

(i) Limited information - For a correct decision and choice about a product, a consumer needs full informationabout the price, quality, durability, composition, etc of the Product. In the absence of full and correct information, a consumer may get exploited.

(ii) Limited supplies- when the supply of goods is less than their demand, the prices may go high and may also encourage the tendency of hoarding. As a consequence, consumers will get exploited.

(iii) Limited competition-when there is limited competition with regard to production i.e., when producers are few and can control and restrict the supply of a product there is a possibility of manipulation in prices.

(iv) Low literacy-Illiteracy causes ignorance, which leads to exploitation of consumers. The level of awareness in our country is generally low