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Home › Bihar Board Class 12 (Arts) › Economics › Simple Applications of Tools of Demand and Supply › How does the Minimum Support Price in India trea…

How does the Minimum Support Price in India treat farmers?

AFixes their land rent
BTaxes their farm output
CPays above market rates
DBans their grain exports
Answer & Solution
Correct answer: C. Pays above market rates
Support prices guarantee farmers a rate above what the market would set, acting as a floor.
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