Question

What is Buffer stock?​

Answer 1

☸Answer☸

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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Answer 2

a reserve of a commodity that can be used to offset price fluctuations.