Which of the following is an example of floor price?

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.