Question

Under government and legal regulations, the government can control prices by:

Options

• Declaring certain goods as essential commodities and regulating their prices

• Taking over all private companies

• Fixing the salaries of all salespersons in private firms

• Banning the sale of all luxury products

Answer 1

The government can declare certain goods as essential commodities and regulate their prices. This regulatory power ensures that vital goods remain affordable and accessible to consumers in the market.