producers are sovereign
it provides low degree of freedom
it widens the inequitable gap
consumers are sovereign
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the question thier is criticsm of price mechanism the answer is option C because if a price of goods is high it affordable to the rich not the poor which brings this statement the rich get richer while the poor get poorer
The answer is B @myschool...
Price mechanism is a system where the force of demand and supply detetmines the price of a commodity.
It negates consumer sovereignty right?...so then neither the producer nor the comsumer have freedom to influence the price. So B is the answer.
@myschool look into.this🙏
It's not completely right to say that producers are sovereign or consumers are sovereign. I believe C should be correct because if a producer sets his price, consumers have the freedom to go for a cheaper product.
Consumer sovereignty and Producer sovereignty are potential consequences of PRICE MECHANISM, not necessarily criticisms
Option A.
Explanation: The sovereignty of consumers is unreal since consumers buy the commodities producers produce in accordance with their wishes. Consumers are forced to purchase those goods which producers want. Thus, the producer is the sovereign, not the consumer. Consumers are merely puppets. Consumers’ choices may be distorted by advertising too.
A. "Producers are sovereign" - This describes a feature rather than a criticism B. "It provides low degree of freedom" - Actually, price mechanisms are known for providing freedom of choice C. "It widens the inequitable gap" - This is a valid criticism as price mechanisms can favor those with more resources D. "Consumers are sovereign" - Like option A, this describes a characteristic rather than a criticism
CRITICISMS 1. Distorted investment priorities 2. Worsening the exploitation of workers. 3. Overproduction of goods 4.
