Question

government measure for increasing prize of goods​

Answer 1

Answer:

Government price controls are situations where the government sets prices for particular goods and services. This can take various forms such as:

Minimum prices – Prices can’t be set lower (but can be set above)

Maximum price – Limit to how much prices can be raised (e.g. market rent)

Buffer stocks – Where government keep prices within a certain band

Limiting price increases – In a privatised monopoly (e.g. electricity, gas, water – where there is no competition) the government regulator may play a role in limiting how much prices can be increased. In the UK, regulators use a formula like RPI-X.

Direct price setting – In a command economy, prices of goods may be set by the government.