Home > Economics Questions and Answers > What is dual pricing?
What is dual pricing?
A
Wholesale price and retail pricing
B
Pricing by agents and pricing by retailers
C
Price fixed by Government and price in open market
D
Daily prices and weekly prices
Correct Answer:
C
Price fixed by Government and price in open market
- Dual pricing refers to a price fixed by the Government and a price in the open market.
- Dual pricing is a system in which the same product is sold at two different prices.
- One price is fixed by the Government, while the other is determined by the open market.
- This system is often used for essential commodities to ensure affordability for the public.
- The government-controlled price is usually lower and meant for priority consumers.
- The market price is based on demand and supply conditions.
- Dual pricing helps balance social welfare and market efficiency.
- It has been used in India for commodities such as food grains, fertilizers, and sugar.