Question

when consumers pay rs. 5000 for a bottle of perfume that only contains rs. 2000 worth of ingredients, they are participating in ________________

Answer 1

3000
I hope these answer is correct

Answer 2

The question is incorrect

It should be :

When the consumer buys for Rs 5000 a thing whose items cost only Rs 2000,what is the economic term for this?

The company is profiteering.

The cost of the ingredient is only 2000 rupees and the consumer buys it for 5000 rupees. This results in a clear extra expenditure of 3000 rupees by him.

This is profiteering as the customer is not getting the total worth of his money. He is losing money to the company.

Profiteering is of great value in the corporate world as it generates a huge chunk of their profits.