1.

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»


Solution :`**` Providing only 9 LPG CYLINDERS at subsidized rates is GOVERNMENT's away of restricting the excess demand for LPG
`**` Since the cylinders now come with a greater price tag, people will optimise its usage
`**` It will HELP in SAVING of natural resources
`**` It will life off some pressure from the government due to fall in its expenditure on subsidies.


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