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Read the following passage and answer the questions given below.For preventing hoarding and keeping the prices of essential commodities within reasonable levels, and to facilitate their availability, the government fixes the prices and makes it mandatory for the traders to sell goods in the market at those price levels. Those who do not follow stipulated price levels are penalised by government through various laws. Goods such as kerosene, diesel, Liquid Petroleum Gas,- Compressed Natural Gas and Piped Natural Gas are examples of goods whose prices are partly or solely subsidised by the government and sold under Administrative Price Mechanism.i) Why does the government fix prices under APM?ii) Which goods are sub sidised by the government? |
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Answer» i. For preventing hoarding and keeping the prices of essential commodities within reasonable levels and to facilitate their availability, the government fixes the prices. ii. Goods such as kerosene, diesel, liquid petroleum gas, compressed natural gas, piped natural gas are examples of goods which are partly or solely subsidised by the government. |
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