Question : What does it mean to promise farmers that the government will purchase their goods at a certain price?
Option 1: Maximum Retail Price
Option 2: Minimum Support Price
Option 3: Both a and b are correct
Option 4: Both a and b are incorrect
Correct Answer: Minimum Support Price
Solution :
Farmers that sell specific crops have a safety net or insurance in the form of the MSP, or minimum price guarantee. Government agencies purchase these crops at a fixed price that was agreed upon with the farmers, and the MSP cannot be changed under any circumstances.
Hence option b is the correct answer.




