Fixation of price levels for wheat and rice by the Commission for Agriculture Costs and Prices CACP ...........

Indian Economic System Agriculture

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Fixation of price levels for wheat and rice by the Commission for Agriculture Costs and Prices (CACP) is an example of?

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CAPF 2020 Paper-1

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Administered Price

Market Price

Control Price

Support Price

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Explanation:

- Administered Price: Prices set by a governing authority rather than the market. These are fixed to control essential goods and ensure they are affordable for consumers.

- Market Price: The price determined by supply and demand without any intervention. It fluctuates based on changes in the market conditions.

- Control Price: Prices which are regulated and controlled by the government to stabilize the economy. It can include price ceilings or floors.

- Support Price: Prices fixed by the government to protect farmers against any sharp fall in market prices, ensuring they receive a minimum profit for their produce. It acts as a safety net.

Correct Answer: 4. Support Price