Which of the following measures will hinder efficient distribution of goods in West Africa
Answer Details
Instituting price control can hinder efficient distribution of goods in West Africa. Price control is when the government sets a maximum price that can be charged for a product. While this may seem like a good way to protect consumers from high prices, it can have negative effects on the distribution of goods.
Firstly, if the maximum price is set below the market price, producers will have less incentive to produce and supply the goods, leading to a shortage of goods in the market. Secondly, if the maximum price is set too high, it may create a surplus of goods that cannot be sold at the regulated price, leading to waste and inefficiency. Finally, price control can lead to corruption and the creation of black markets, where goods are sold at higher prices, defeating the purpose of price control in the first place.
Therefore, instituting price control can hinder efficient distribution of goods in West Africa, and other measures such as improving road networks, provision of adequate storage facilities, and formation of producers' co-operative societies can be more effective in improving the distribution of goods.