Question

In India economy, the demand and supply forces have _______.

• A. considerable role to play in price determination.
• B. no role to play in price determination.
• C. moderate role to play in price determination.
• D. none of the above

Answer 1

The correct option is A considerable role to play in price determination.

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.