Price Hike and we can control it-Essays in English

Price-hike

Outline:

1. Definition of price-hike
2. Causes of price-hike
3. Measures to control price-hike
4. Fair means to earn the profit
5. Conclusion

A price hike refers to an increase in the prices of goods and services over time, resulting in an increase in the cost of living for consumers. It is an economic phenomenon that exists all over the world. It can be caused by a variety of factors, including inflation, supply shortages, increased demand, and changes in taxes or tariffs. While price hikes can be a natural result of market forces, they can also have negative consequences for consumers and the economy as a whole. The whole infrastructure is damaged and the power of purchase of laymen decreases. Even the retailers become helpless. Therefore, it is essential to take measures to control price hikes and maintain stability in the market so that everyone should have peace of mind and smooth functioning.

One of the most effective ways to control price hikes is to increase the supply of goods and services. Though it is not an easy task, this can be managed with a small investment. This can be achieved by encouraging investment in production, improving infrastructure, and reducing barriers to trade. The government should provide such a conducive business environment to encourage small businessmen. By increasing supply, market forces will push prices down, making goods and services more affordable for consumers. Additionally, reducing trade barriers can increase competition, leading to further price reductions.

Another way to control price hikes is to implement price controls or subsidies. Price controls set a maximum price that can be charged for goods and services, while subsidies provide financial support to producers to keep prices low. While price controls and subsidies can be effective in the short term, they can have negative consequences in the long term. Price controls can lead to shortages and black markets, while subsidies can distort the market and lead to inefficiencies.

Regulating monopolies and promoting competition can also help control price hikes. Monopolies can charge higher prices since consumers have no other options, while competition leads to lower prices as firms compete for customers. Therefore, promoting competition by breaking up monopolies, reducing barriers to entry, and enforcing anti-trust laws can lead to lower prices and a more efficient market.

Finally, controlling inflation is essential to preventing price hikes. Inflation occurs when the supply of money increases faster than the supply of goods and services. When there is too much money chasing too few goods, prices increase. Therefore, central banks can control inflation by regulating the money supply through interest rates, reserve requirements, and open market operations. By controlling inflation, price hikes can be prevented, and stability can be maintained in the market.

In conclusion, price hikes can have negative consequences for consumers and the economy as a whole. Therefore, it is essential to take measures to control price hikes and maintain stability in the market. Increasing supply, implementing price controls or subsidies, regulating monopolies, promoting competition, and controlling inflation are all effective ways to control price hikes. Stability in the business policies will also promote control price-hike. By implementing these measures, we can create a more stable and efficient market that benefits everyone. 

Trending Posts:

Click here to read "The Political Instability" 

Click here to read "The Natural Disasters" 

Click here to read Dignity of Work