Question

how will be the government regulate the prices when their is in increasing in price​

Answer 1

Answer:

Regulations, which can involve price controls, can disrupt demand and supply in the affected industry. When product prices in a certain sector are regulated to a high price, it can create excessive supply and diminished demand.

Answer 2

The government’s move to regulate prices of essential drugs have actually led to increase in their cost when compared to similar drugs that remained unaffected by the price control, according to the Economic Survey for 2019-20.

The data was analysed for 1751 formulations and 49893 brands and showed that prices of drugs that came under Drugs Price Control Order (DPCO), 2013 increased on an average by Rs 71 per mg of the active ingredient, whereas the prices increased by Rs 13 per mg of the active ingredient for those unaffected by the price control.