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