Question

What is token price? What is the purpose behind fixing token price of a commodity?

Answer 1

Answer:

Explanation:

Token price refers to a price which is far below the cost of production per unit of goods and services.

Certain section of the population cannot afford to avail certain essential goods and services at their market price. These essential goods and services includes education services, health services and medical services,  To overcome this issue Government  as well as few privately owned ‘Charitable Institutions’ provide the underprivileged section of the population with these services at a token price.

The main purpose behind fixing token price of a commodity is to prevent its wasteful use and provide these goods and services to the genuine end user.

Hope this helps.