Question

With the help of demand and supply curves show the minimum support price.

Answer 1

Answer:

Explanation:

For agricultural products, this price is known as minimum support price. Fig shows that in case of excess supply, government fixes price floor limit at OP2, so as to prevent any price fall tendency appearing due to excess supply cd such price floor limit saves the producers from losses.

Answer 2

Answer:

Minimum Support Price is the price at which government purchases crops from the farmers, whatever may be the price for the crops. Minimum Support Price is an important part of India's agricultural price policy. The MSP helps to incentivize the framers and thus ensures adequate food grains production in the country.

Explanation:

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