Which of the following is not an advantage of price control?

Assessment: WAEC SSCE - Economics - 1988 (Objective) Subject: Economics

Question 1 Report

Which of the following is not an advantage of price control?
Answer Details
The advantage of price control is the ability of the government to regulate the prices of goods and services in order to make them more affordable and prevent exploitation of consumers. However, one disadvantage of price control is the distortion of the price mechanism. This means that prices are no longer determined by market forces, such as supply and demand, but rather by government intervention. This can lead to inefficiencies in the market, such as shortages or surpluses, and can also discourage innovation and competition. Therefore, the answer to the question is "Distortion of price mechanism."
Read lesson note on The Theory Of Production (JAMB)
Read lesson note on The Theory Of Price Determination (JAMB)
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