to protect the interest of consumer,the government fixed the minimum price of vastu is called.
Answers
Answer:
The ECA was enacted in 1955. It has since been used by the Government to regulate the production, supply and distribution of a whole host of commodities it declares ‘essential’ in order to make them available to consumers at fair prices. Additionally,the government can also fix the maximum retail price (MRP) of any packaged product that it declares an “essential commodity”.
The list of items under the Act include drugs, fertilisers, pulses and edible oils, and petroleum and petroleum products. The Centre can include new commodities as and when the need arises, and take them off the list once the situation improves.
Here's how it works. If the Centre finds that a certain commodity is in short supply and its price is spiking, it can notify stock-holding limits on it for a specified period. The States act on this notification to specify limits and take steps to ensure that these are adhered to. Anybody trading or dealing in the commodity, be it wholesalers, retailers or even importers are prevented from stockpiling it beyond a certain quantity.
A State can, however, choose not to impose any restrictions. But once it does, traders have to immediately sell into the market any stocks held beyond the mandated quantity. This improves supplies and brings down prices. As not all shopkeepers and traders comply, State agencies conduct raids to get everyone to toe the line and the errant are punished. The excess stocks are auctioned or sold through fair price shops.
For instance, the Union Government on 14 March 2020 brought masks and hand-sanitisers under the Essential Commodities Act, 1955 to make sure that these products, key for preventing the spread of Covid-19 infection, are available to people at the right price and in the right quality.
In Economics,the minimum price set by the government to protect consumer rights or interest is called Price Ceiling or Minimum Price.
Explanation:
Price ceiling basically implies the minimum or the lowest price set by the government which can be charged by the sellers or producers to consumers for any product or service.Generally,the government set price ceiling below the equilibrium price in any market,which creates market shortage,as at price ceiling,the suppliers or producers are not willing to supply as much as the market demand.The price is intentionally kept lower than the equilibrium to safeguard the interest of the buyers or consumers.In normal cases,the government usually provides the shortage amount in the market to eliminate any market imperfections or sustained disequilibrium.