Highlight any five objectives of price control.

Answer Details

Price control is government regulation of the price of goods and services, usually by fixing a maximum (ceiling) or minimum (floor) price. Its objectives include:

• To prevent exploitation of consumers: a maximum price stops sellers from charging excessively high prices for essential goods.
• To check inflation: holding prices down helps to control a general rise in the price level.
• To protect low-income earners: it keeps essential goods within the reach of the poor.
• To ensure fair distribution of goods: controlled prices, often with rationing, spread scarce goods more evenly.
• To stabilise prices: a minimum price protects producers (for example farmers) from ruinously low prices and steadies their incomes.

(Other valid objectives: to discourage hoarding and profiteering, and to reduce the general cost of living.)