Question

Do you think cement prices should be regulated? Why or why not?

Answer 1

No, cement prices should not be regulated.

Regulation of the prices means that the government will fix the price pf cement at a particular level. This will lead to increase in the demand of cement. The result of this will be shortage of cement in the market or ill practices like hoarding and black marketing in the economy.

Although cement is an important input for construction industry, but only with price regulation of cement, the cost of production will not reduce. It will rather result in shortage.

Government should not interfere in the market by regulating prices and let there be healthy competition.

Government should resort to other practices like reduction of taxes of inputs needed in construction to decrease the cost.