WHY PRICE CONTROL SYSTEM MAY NOT BE SUITABLE FOR CONTROLLING DEMAND- PULL INFLATION

• Goods generally are in short supply
• Buyers will prefer buying at higher prices rather than going home without any goods
• The interaction of the forces of demand and supply will work against price control system.

• Price control system is prone to a lot of malpractices.
• The existence of black market will contribute a lot in making price control not suitable in checking demand-pull inflation.

1.     economic tools for nation building
2. budgeting
3. factors affecting the expansion of industries
4. mineral resources and the mining industries
5. demand and supply
6. types of demand curve and used
7. advertising industry
8. factors of production
9. entrepreneur
10. joint stock company
11. public enterprises
12. private enterprises
13. limited liability companies
14. migration
15. population

REASONS PRICE CONTROL SYSTEM MAY NOT BE SUITABLE FOR CONTROLLING DEMAND- PULL INFLATION

• Goods generally are in short supply
• Buyers will prefer buying at higher prices rather than going home without any goods
• The interaction of the forces of demand and supply will work against price control system.
• Price control system is prone to a lot of malpractices.
• The existence of black market will contribute a lot in making price control not suitable in checking demand-pull inflation.

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