Question

Which of the following factors are responsible for exploitation of consumers in India?

• A. Limited information
• B. Limited supply
• C. Limited competition
• D. All of above

Answer 1

Answer: (D)

All of above

Following factors are responsible for exploitation of consumers in India:-

• Limited information- In a capitalist economy the producers and the sellers are free to produce any goods or services in any quantity and there is no regulation on prices. In that case it is the duty of the producers and sellers to furnish full information about their product to the consumers. In the absence of timely and correct information like the price, quality, composition, terms of purchase, guarantee/warranty etc., and the consumers may make a wrong choice and loose their money.
• Limited supply- The consumers are exploited when the goods and services are not available in the market to the required amount or quantity. This makes or gives chance for black marketing & hoarding, of the goods etc.
• Limited competition- At times only one producer or a group of producers produce some products. So they control the production and supply of certain goods. Thus they manipulate the prices of their products by making these non-available for certain period. So the prices rise high and the benefit goes to that particular group causing loss to the customers.