Q. 124.7( 3 Votes )

Explain the circumstances under which markets do not work in a fair manner. [CBSE 2012]

Answer :

The circumstances under which markets do not work in a fair manner are as following-

1. Monopoly- When producers are few and powerful whereas consumers purchase in small amounts and are scattered, the producers can manipulate the market to make profits. This happens especially when large companies are producing these goods.

2. False advertisement- At products are falsely advertised, their qualities exaggerated or outrageous claims to attract consumers.

Explanation- Fair markets are necessary for the protection of both the consumers as well as the other producers.

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