Question
Why are rules and regulations required in the market-place? Explain.

Answer

In market, producers are few and powerful whereas consumers are scattered and purchase goods in small amounts. This leads to situation where consumers get exploited. Hence, there is a need for rules and regulations to ensure protection for the consumers. For examples:
  • When chemist sells expired medicine to patient, the patient’s situation may get even worse.
  • Seller exploits consumer by selling defective electronic appliances which can adversely harm the consumers.
  • By selling adulterated fruits, juice, milk etc., producers exploit consumers.

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