1.

“Economic conditions and government regulations play a vital role in determining product price.” Comment.

Answer»

If market conditions are good i.e. high demand and more customers are ready to pay with high income, companies set high prices for their product and vice-versa.

Govt. fixes the prices for the protection of consumers and in this case, manufacturer cannot increase the price of the product beyond the limit decided by the govt. If govt. policies are supportive and promote businesses through healthy competition in the market, the firms can fix higher prices.



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