Under which system does the government fix prices that the sellers have to adhere to?

Minimum support price system

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Maximum support price system

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Administrative price mechanism

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Public distribution system

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Solution

The correct option is C Administrative price mechanism
Under administrative price mechanism, the government fixes a reasonable price for all the essential goods and services. All the sellers are expected to adhere to the price fixed by the government.

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Similar questions

The prices of which among the following item(s) is/are not market linked, but are fixed by the Government?

At any price higher than the market-clearing price, the quantity that buyers want to buy is less than the quantity that sellers want to sell.

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