Can you think of any commodity on which price ceiling is imposed in India? What may be the consequences of price ceiling?

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Solution

In India, price ceiling may be imposed on grain, kerosene, water etc.

The consequences of price ceiling may be:

i) shortage of the commodity

ii) rationing: limited quantities

iii) black market emergence

iv) poor quality of goods

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Can you think of any commodity on which price ceiling is imposed in India? What may be the consequences of price ceiling?

In India, price ceiling may be imposed on grain, kerosene, water etc. The consequences of price ceiling may be: i) shortage of the commodity ii) rationing: limited quantities iii) black market emergence iv) poor quality of goods

In India, price ceiling may be imposed on grain, kerosene, water etc.

The consequences of price ceiling may be:

i) shortage of the commodity

ii) rationing: limited quantities

iii) black market emergence

iv) poor quality of goods