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Question

Advertisement, Price-Cutting, Discounts, etc. in a Capitalist Economy are:

A
Attributed to Government Regulations
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B
Methods of handling competition
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C
Effects of Producer Sovereignty
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D
All of the above
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Solution

The correct option is A Methods of handling competition
In capitalist economy, prices of the commodities are affected by market forces i.e. demand and supply which leads to open competition in the economy. Therefore, various tactics are used by the buyers to attract customers.

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