Question

Two examples of restrictive trade.

Answer 1

First we understand what is restrictive trade.

Restrictive trade is a trade practice in which producer tends to manupulation of price, or affect flow of supplies in the market relating to goods and services in such a manner as to impose on the consumers unjustified costs and restrictions. The producers, pursue restrictive trade in order to maximise their profits and gain.

Examples of restrive trade -1 Price discrimination or price manupulation = It means producer charge different price to different customers.

2 Hoarding or delay in supply = In this situation producers supply less goods and services which is needed in the market.