define buffer stock
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Explanation:
Buffer stock is a reserve of a commodity that can be used to offset price fluctuations.
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chetan5113:
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A buffer stock scheme is an attempt to use commodity storage for the purposes of stabilising prices in an entire economy or an individual market.
Specifically, commodities are bought when a surplus exists in the economy, stored, and are then sold from these stores when economic shortages in the economy occur.
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