Question 17 of 21intermediate🔍 AnalyzeShort Answer3 marks

What will happen if the people supplying onions do not bring the required quantities to the market? What do you think the government should do in this situation?

Correct Answer

If onion suppliers do not bring required quantities to the market, there will be severe shortage leading to very high prices, hoarding by traders, and difficulty for common people in accessing this essential commodity.

Consumers may struggle to find onions, and those available will be sold at premium prices.

The government should take several actions:

First, import onions from other countries to increase supply and stabilize prices. Second, release onions from government buffer stocks if available.

Third, take action against hoarders and black marketeers who may be artificially creating shortages.

Fourth, impose price limits or sell onions through government outlets at controlled prices.

Fifth, improve storage facilities to prevent wastage and ensure year-round availability. Sixth, provide support to farmers to increase onion cultivation.

The government's role is to ensure that essential commodities remain accessible to all citizens while also protecting farmers' interests. The chapter mentions that the government 'monitors the interaction between consumers and producers, and fair determination of price.'

Exercise: LET'S EXPLORE | Q: 12 | (Page Page 20)
For More Understanding

Explanation

The chapter discusses government's role in markets on pages 19-21, including controlling prices for essential goods and ensuring fair practices. It states that 'the government controls the prices of certain goods' and sets 'maximum price that the seller can charge' for essential goods. The government also 'sets the minimum price at which essential agricultural products' can be sold to protect farmers.

Solution Steps

  1. Shortage of onions leads to high prices, hoarding, and difficulty for consumers

  2. Government should import onions from other countries to increase supply

  3. Government should release onions from buffer stocks if available

  4. Action should be taken against hoarders and black marketeers creating artificial shortages

  5. Government should impose price limits or sell through government outlets at controlled prices

  6. Improve storage facilities and support farmers for long-term availability

  7. Government's role is to ensure essential commodities remain accessible while protecting farmers' interests

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