[amp_mcq option1=”Hoarding and black marketing” option2=”Rationing and buffer stock” option3=”Illegal sales” option4=”Buffer stock and minimum support price” correct=”option1″]<\/p>\n
The correct answer is A. Hoarding and black marketing.<\/p>\n
A price floor is a minimum price set by the government for a good or service. This means that sellers are not allowed to sell the good or service for less than the price floor. Price floors are often used to protect the interests of sellers, especially farmers. However, price floors can also have negative consequences, such as hoarding and black marketing.<\/p>\n
Hoarding is when people buy goods or services in anticipation of a price increase. This can lead to shortages of the good or service, as there is less available for people who need it. Black marketing is when people sell goods or services at a higher price than the price floor. This can lead to higher prices for consumers, as well as a decrease in the quality of goods and services.<\/p>\n
Rationing and buffer stock are not implications of price floors. Rationing is a system in which the government limits the amount of a good or service that people can buy. This is often done during times of scarcity. Buffer stock is a government stockpile of a good or service. This is used to stabilize prices and prevent shortages.<\/p>\n
Illegal sales are not implications of price floors. Illegal sales are when people sell goods or services that are not legal to sell. This is not related to price floors.<\/p>\n","protected":false},"excerpt":{"rendered":"
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