Search SchoolNGR

Monday, 20 April 2026
Register . Login

One of the criticisms of the price mechanism is that

One of the criticisms of the price mechanism is that
Take Free Practice Test On 2026 JAMB UTME, Post UTME, WAEC SSCE, GCE, NECO SSCE
  • A Producers are sovereign
  • B It provides low degree of freedom
  • C It widens the inequitable gap
  • D Consumers are sovereign
Correct Answer: Option A
Explanation:
Price mechanism refers to the system where the forces of demand and supply determine the prices of commodities. This means that, prices are left in the fate of market forces negating the concept of consumer sovereignty.
Consumers are forced to purchase those goods which producers want. Thus, the producer is sovereign, not the consumer.Â

Share question on: