Saturday, August 21, 2010

How does the government set and control prices of commodities?

Governments do not set and control prices of commodities. The price comes from the demand and supply through international markets.





At one time the Organisation of Petroleum Exporting Countries (OPEC) did control the price of oil by adjusting supply but they have given up trying to do this as demand has outstripped the capability to meet it and teh price has soared.

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