• Skip to main content
  • Skip to secondary menu
  • Skip to primary sidebar
  • Skip to footer
  • HOME
  • CONTACT US
  • All Essays
  • JEE Main 2022

Study Today

Largest Compilation of Structured Essays and Exams

  • Essay⯆
    • Freedom Fighters
    • Leaders
    • Events
    • Festival
  • JEE Main
  • Scholarship 2022
    • Class 1
    • Class 2
    • Class 3
    • Class 4
    • Class 5
    • Class 6
    • Class 7
    • Class 8
    • Class 9
    • Class 10
    • Class 11
    • Class 12
  • Speech
  • History
  • General Knowledge
    • Things to Know⯆
    • Blog

Essay on Price Hike for Children and Students

June 8, 2018 by Study Mentor Leave a Comment

We pay an amount and buy things we want to have. What if the amount spent to buy two pens earlier can now fetch you only one? This change is what we refer to as price hike. 

Though all of us experience it frequently as rates of things change over a period of time, it turns worrisome when purchasing power does not increase at par with the shooting prices of commodities. It is an economic phenomenon both easy and complex at the same time. 

Price Rise is termed inflation in economics and is a necessary evil. Necessary as long as it denotes progress and improvement in per capita income and consumption. But it becomes an evil when the rate of inflation is too high leading to devaluation of money. Due to inflation your savings would be used up and the effective interest earned too would be meagre. 

Markets and its ways 

Markets have a cycle of demand-supply, where price of an item depends on several patterns. Firstly, on its quality, secondly on it quantity in the market, thirdly on the demand or popularity of the item and fourthly on affordability of the buyer. Any of this factor if altered independent of the other creates a chaos.

Consider a man with surplus money, he would think little about the price and would rarely bargain. If too many people have more money this leads to overall increase in cost of goods. Similarly, if goods are not in surplus to sell them their rates are raised so that only those who can afford it would purchase it.

High quality products are priced so, as they are made of best and costly sub-components and skills. Whereas at times the trending items like unhealthy but popular junk food like burger and pizza are priced way too high. 

Table of Contents

  • Causes of Price Rise 
    • How to fix it? 

Causes of Price Rise 

There are multiple reasons for Price Rise and emergence of above patterns in market like the following: 

Ineffective distribution: Even when agricultural produce is sufficient in a country, in few regions of production goods would be cheap. But due to high transportation and storage cost in another region the effective rate ends up increasing steeply. 

Black Marketeering/Hoarding: With surplus produce of essential items some wholesalers procure huge amounts and create artificial shortage of goods in market. Due to high demand the rates increase. 

Unwanted Taxes: Government machinery to generate revenue on interstate goods, till they reach the customer add unnecessary taxes and tariffs, thus soaring the rates. 

Natural disaster: In times of famine and flood like disaster the economy is hit badly as people are in crisis, resources are destroyed and transport facilities are choked making ordinary items also very expensive. 

Man-made disaster: In situation of war or internal security crisis as in naxal region, or border areas and rugged terrain, goods take more time and money to reach people due to security issues and time taking checks and clearance by military thus multiplying their costs. 

Corruption: Bribes that are given to corrupt official and misuse of power while checking at export/import centers, falls as a burden on the end user when they purchase any product from such a system. 

Global Market Trends: Items like crude oil are affected by global market trends, little change too has ripple effect as all industries are dependent on it for fuel. This impacts price of goods when they leave factories. And every other industry in line using the products increase the costs in tandem. 

Non-Performing Assets(NPA): The increasing NPA lead to crisis in market with shortage of money for genuine businessmen and blocking of huge sums with no hope of recovery. This shoots price of commodities. 

How to fix it? 

Improving the process: Manufacturing, Procurement, Storage, Transport, retail each step requires overhauling to be inflation proof. Strict punishment for hoarders and Black marketers that sets an example and deters other such people in society. Corruption in government offices should be scrutinized and accounted for.

Use of digital modes of payment for increasing accountability and checking profit margins incurred at various stages. Infrastructure development in hinterland and sensitive areas for effective in time transport. Strict bank rules for credit and loan facility.

Improved policies by central bank (RBI) and market regulator(SEBI) to manage flow of money in economy. Right political intention and will of system to curb this menace and make nation economically strong. Price rise affects every section of society immensely, lowering the moral of population and requires to be dealt with an iron hand. 

Filed Under: Essay

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

Search for Essay

Top Engineering Exams in India

  1. JEE Main

Get Benefits in Click

Best Scholarship for Students

  1. Scholarship 2022
  2. Apj Abdul Kalam Scholarship 2022
  3. Ashirwad Scholarship 2022
  4. Bihar Scholarship 2022
  5. Canara Bank Scholarship 2022
  6. Colgate Scholarship 2022
  7. Dr Ambedkar Scholarship 2022
  8. E District Scholarship 2022
  9. Epass Karnataka Scholarship 2022
  10. Fair And Lovely Scholarship 2022
  11. Floridas John Mckay Scholarship 2022
  12. Inspire Scholarship 2022
  13. Jio Scholarship 2022
  14. Karnataka Minority Scholarship 2022
  15. Lic Scholarship 2022
  16. Maulana Azad Scholarship 2022
  17. Medhavi Scholarship 2022
  18. Minority Scholarship 2022
  19. Moma Scholarship 2022
  20. Mp Scholarship 2022
  21. Muslim Minority Scholarship 2022
  22. Nsp Scholarship 2022
  23. Oasis Scholarship 2022
  24. Obc Scholarship 2022
  25. Odisha Scholarship 2022
  26. Pfms Scholarship 2022
  27. Post Matric Scholarship 2022
  28. Pre Matric Scholarship 2022
  29. Prerana Scholarship 2022
  30. Prime Minister Scholarship 2022
  31. Rajasthan Scholarship 2022
  32. Santoor Scholarship 2022
  33. Sitaram Jindal Scholarship 2022
  34. Ssp Scholarship 2022
  35. Swami Vivekananda Scholarship 2022
  36. Ts Epass Scholarship 2022
  37. Up Scholarship 2022
  38. Vidhyasaarathi Scholarship 2022
  39. Wbmdfc Scholarship 2022
  40. West Bengal Minority Scholarship 2022

Advertisement

Students Big Search Today

  1. Speech about Family
  2. Women Safety Essay
  3. Autobiography of a Pen
  4. About Haritha Haram
  5. Mahatma Gandhi Essay
  6. Clayton Rule
  7. My Favourite Cartoon
  8. Clayton Rule
  9. Importance of Trees Essay
  10. Directive Principles of State Policy
  11. My Favourite Teacher
  12. Speech About Family
  13. My Father Essay
  14. Honesty is the Best Policy Essay
  15. my favourite book

Footer

Top Trending Essays in March 2021

  1. Essay on Pollution
  2. Essay on my School
  3. Summer Season
  4. My favourite teacher
  5. World heritage day quotes
  6. my family speech
  7. importance of trees essay
  8. autobiography of a pen
  9. honesty is the best policy essay
  10. essay on building a great india
  11. my favourite book essay
  12. essay on caa
  13. my favourite player
  14. autobiography of a river
  15. farewell speech for class 10 by class 9
  16. essay my favourite teacher 200 words
  17. internet influence on kids essay
  18. my favourite cartoon character

Brilliantly

SAFE!

studytoday.net

Content & Links

Verified by Sur.ly

2022

Essay for Students

  • Essay for Class 1 to 5 Students

Scholarships for Students

  1. Class 1 Students Scholarship
  2. Class 2 Students Scholarship
  3. Class 3 Students Scholarship
  4. Class 4 Students Scholarship
  5. Class 5 students Scholarship
  6. Class 6 Students Scholarship
  7. Class 7 students Scholarship
  8. Class 8 Students Scholarship
  9. Class 9 Students Scholarship
  10. Class 10 Students Scholarship
  11. Class 11 Students Scholarship
  12. Class 12 Students Scholarship
  13. Class 11 Students Scholarship
  14. Class 12 Students Scholarship

STAY CONNECTED

  • Facebook
  • Instagram
  • Pinterest
  • Twitter

Resources

  • About Study Today
  • Contact Us
  • Privacy Policy
  • Terms & Conditions

Scholarships

  1. Apj Abdul Kalam Scholarship
  2. Ashirwad Scholarship
  3. Bihar Scholarship
  4. Canara Bank Scholarship
  5. Colgate Scholarship
  6. Dr Ambedkar Scholarship
  7. E District Scholarship
  8. Epass Karnataka Scholarship
  9. Fair And Lovely Scholarship
  10. Floridas John Mckay Scholarship
  11. Inspire Scholarship
  12. Jio Scholarship
  13. Karnataka Minority Scholarship
  14. Lic Scholarship
  15. Maulana Azad Scholarship
  16. Medhavi Scholarship
  17. Minority Scholarship
  18. Moma Scholarship
  19. Mp Scholarship
  20. Muslim Minority Scholarship
  21. Nsp Scholarship
  22. Oasis Scholarship
  23. Obc Scholarship
  24. Odisha Scholarship
  25. Pfms Scholarship
  26. Post Matric Scholarship
  27. Pre Matric Scholarship
  28. Prerana Scholarship
  29. Prime Minister Scholarship
  30. Rajasthan Scholarship
  31. Santoor Scholarship
  32. Sitaram Jindal Scholarship
  33. Ssp Scholarship
  34. Swami Vivekananda Scholarship
  35. Ts Epass Scholarship
  36. Up Scholarship
  37. Vidhyasaarathi Scholarship
  38. Wbmdfc Scholarship
  39. West Bengal Minority Scholarship

All Rights Reserved Copyrights @ 2020 StudyToday.net