Question

Identify the reasons responsible for price rise.

• A. Increase in export
• B. Decrease in monetary supply
• C. Population growth
• D. Smuggling, hoarding, and black marketing

Answer 1

Answer: (A), (C), (D)

Smuggling, hoarding, and black marketing

There are two factors responsible for price rise. These are:
(a) due to the lack of instantaneous increase in production and supply of commodities and services in the economy
(b) due to a sharp increase in the total demand of the country as compared to the supply