Mention a few factors which cause exploitation of consumers.

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asked Jul 17, 2017 in Economics by Deepakk (585 points) 20 35
edited Jul 17, 2017 by Deepakk

1 Answer

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answered Jul 18, 2017 by mannu (2,283 points) 2 7
(a) Limited Information:

In a capitalist economy the producers and the sellers are free to produce any goods or services in any quantity and there is no regulation on prices. In that case it is the duty of the producers and sellers to furnish full information about their product to the consumers. In the absence of timely and correct information like the price, quality, composition, terms of purchase, guarantee/warranty etc., and the consumers may make a wrong choice and loose their money.

(b) Limited Supplies:

The consumers are exploited when the goods and services are not available in the market to the required amount or quantity. This makes or gives chance for black marketing & hoarding, of the goods etc.

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