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Which of the following is an example of floor price? |
Minimum Support Price for Foodgrain Price printed on any article. Price taken by Seller Price asked by buyer to buy. |
Minimum Support Price for Foodgrain |
The correct answer is Option (1) → Minimum Support Price for Foodgrain A floor price is the minimum price set by the government above the equilibrium price, below which a good cannot be sold legally. It is intended to protect producers, especially in agriculture, from prices falling too low. The Minimum Support Price (MSP) for foodgrains is a classic example of a price floor. It ensures that farmers receive a minimum income for their produce, regardless of market fluctuations. |
