Question

profiteering brings loss both for producer and consumer give reason

Answer 1

Profiteering is the result of unethical practices of trade which leads to corruption in Society. It refers to profits or easy money earned at the cost of public/customers. Increase in price raise and therefore, profit margin of producers and distributers have led to profiteering. And continuous price raise leads to inflation which erodes a large chunk of income of the masses. It also leads to inequality and poverty. This necessitates government intervention for regulations on control of prices, expansion of cooperative marketing sector, proper taxation policy etc. to act as remedial measures to check profiteering. Thus Profiteering brings loss to both producer and consumer.