Question

Explain any three factors which are responsible for exploitation of the consumer

Answer 1

The three factors are

1) When the producers are small and powerful and large producers have monopoly rights over the production units.

2) When the consumers are illiterate, the producers easily cheat the consumers by providing them with false information.

3) The producers mix cheap materials with food items such as ghee, oil, ..etc to get more profit. This is known as adulteration

Answer 2

Explanation:

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