Question

What are merits and demerits of buffer stock for class 9

Answer 1

Answer:

The big downside to buffer stocks is that they provide a subsidy to agricultural markets, causing market distortions and possibly impairing efficiency. In a normal, unsubsidized corn market, for example, farmers would stop planting corn and switch to something else if the market became glutted

Answer 2

Answer:

The big downside to buffer stocks is that they provide a subsidy to agricultural markets, causing market distortions and possibly impairing efficiency. In a normal, unsubsidized corn market, for example, farmers would stop planting corn and switch to something else if the market became glutted.

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