Question

In a mixed type of economy ______ of price mechanism is found.

• A. dual price system
• B. market driven price system
• C. administrative price control
• D. none of the above

Answer 1

Answer: (C)

administrative price control

In mixed type economy (like India),in order to determine the equilibrium price and quantity in the market,free play of demand and supply forces takes place ,together with this government also intervenes in order to keep a check on inflationary and deflationary gap in an economy through certain fiscal and monetary policies.