explain the concept of buffer stock as a tool of price ceiling
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A buffer stock is a stock which is stored for the times when there will be a shortage in the economy. and when later this product is sold from the storage a price floor is set so that the commodity can be sold at lowest legal price. Price floor is used by the government to prevent prices from being too low.
Answered by
1
Answer:
A buffer stock is a stock which is stored for the times when there will be a shortage in the economy. and when later this product is sold from the storage a price floor is set so that the commodity can be sold at lowest legal price. Price floor is used by the government to prevent prices from being too low.
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