Price controls are implemented on life-saving medicines, hand sanitisers, basic food grains and agricultural minimum support prices. Governments cap prices to prevent hoarding and exploitation, while price floors protect farmers from incurring losses.
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Kriti
Asked: In: Class 9 Social Science
I refute this statement because income growth increases demand primarily for normal goods. For inferior goods, higher purchasing power causes consumers to switch to superior alternatives, reducing the demand for cheaper low-quality goods.