Question

Why are rules and regulations required in the marketplace? Illustrate with a few examples.

Answer 1

The rules and regulations required in the market place are;we have to go in a correct direction, we have to go by walk and we should not use motors because it is a chance of occurring accident

Answer 2

Answer:

Rules and regulations are required in the marketplace to protect consumers against exploitation by sellers and service provider. Especially when large companies are producing these goods and these companies with huge wealth, power and reach can manipulate the market in various ways. Sellers often abdicate responsibility for a low-quality product, cheat in weighing out goods, add extra charges over the retail price, sell adulterated/ defective goods and also provide false information about a product or service. Markets do not work in a fair manner when producers are few and powerful whereas consumers purchase in small amounts and are scattered. Hence, rules and regulations are needed to protect the scattered buyers from powerful and fewer producers who monopolise markets. For example, a grocery shop owner might sell expired products and then blame the customer for not checking the date of expiry before buying the items.