Question : Administered prices refer to:
Option 1: Prices are determined by forces of demand and supply.
Option 2: Prices determined by sellers in the market
Option 3: Prices determined by an external authority which is usually the government
Option 4: None
Correct Answer: Prices determined by an external authority which is usually the government
Solution : The correct answer is (c) Prices determined by an external authority which is usually the government.
Administered prices are prices that are set by an external authority, such as the government. These prices are not determined by the forces of demand and supply in the market. Administered prices are often used to control inflation or to ensure that certain goods and services are available at a certain price.
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