Question

When was a differential price policy adopted by the government ? What were its characteristic features?

Answer 1

Differential pricing is a strategy of selling the same product to different customers at different prices. It helps to maximize the profit by selling a product at the maximum price a customer is willing to pay. The government adopted a differential price policy in 1992. Its main features were:

1. Different prices were paid by the customers.

2. There were ration cards for the poorer sections. They paid lower prices compared to the richer ones.

3. The policy was for the benefit of the poorer sections of society.