Why are rules and regulations required in the marketplace? Give reasons.

There should be rules and regulations in the market:

1. Consumers can be sold adulterated good, defective products wrong quantity or false information to increase profits of the sellers.

2. Such malpractices can not only be exploitative but also harmful to consumers.

3. Legal rights protect the consumer from such exploitation and ensure compensation in case of any harm.

Explanation: Markets can work in unfair means through a variety of ways. Sellers are usually concerned only with profit and not consumers’ welfare. So consumers must be aware and protected.