Question

what is the 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.

Explanation:

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Answer 2

A buffer stock is a scheme or system which buys and store stocks at times of good harvest to prevent prices falling below a target range and releasing stocks during bad harvests to prevent prices rising above a target range.

a reserve of a commodity that can be used to offside prices fluctuations.

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