Read the two statements and choose the correct option.
I. Selling essential goods through ration shops at a controlled price is linked to a price ceiling.
II. Buffer stocks of food grains are linked to a price floor.

Only ICorrect answerYour answerOnly IICorrect answerYour answerBoth I and IICorrect answerYour answerNeither I nor IICorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer C

Correct answer: C

Ration shops distribute a good whose price is held below equilibrium: a ceiling. I is true.
Grain bought at MSP to hold the price up becomes buffer stock: a floor. II is true.

Ten questions from Market Equilibrium & Price Controls, at your own pace.

Ten questions from Market Equilibrium & Price Controls, at your own pace.

Read the two statements and choose the correct option.I. Selling essential goods through ration shops at a controlled price is linked to a price ceiling.II. Buffer stocks of food grains are linked to a price floor.