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In the market, three exists demand for LPG cylinders. To do away with this excess demand government has tried to restrict its usage by providing only 9 LPG cylinders at subsidized rates in a year. What policy implication does this move by government have ?

Answer» <html><body><p><br/></p>Solution :`**` Providing only 9 <a href="https://interviewquestions.tuteehub.com/tag/lpg-537702" style="font-weight:bold;" target="_blank" title="Click to know more about LPG">LPG</a> <a href="https://interviewquestions.tuteehub.com/tag/cylinders-942674" style="font-weight:bold;" target="_blank" title="Click to know more about CYLINDERS">CYLINDERS</a> at subsidized rates is <a href="https://interviewquestions.tuteehub.com/tag/government-1010037" style="font-weight:bold;" target="_blank" title="Click to know more about GOVERNMENT">GOVERNMENT</a>'s away of restricting the excess demand for LPG <br/> `**` Since the cylinders now come with a greater price tag, people will optimise its usage <br/> `**` It will <a href="https://interviewquestions.tuteehub.com/tag/help-1018089" style="font-weight:bold;" target="_blank" title="Click to know more about HELP">HELP</a> in <a href="https://interviewquestions.tuteehub.com/tag/saving-1195397" style="font-weight:bold;" target="_blank" title="Click to know more about SAVING">SAVING</a> of natural resources <br/> `**` It will life off some pressure from the government due to fall in its expenditure on subsidies.</body></html>


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