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Answer to Question #60481 in Microeconomics for avinash

Question #60481
If the government announces the Minimum Support Price of Rs 10 per kg of rice, what will be the effect in rice market?
1
Expert's answer
2016-06-20T09:48:02-0400
If the government announces the Minimum Support Price of Rs 10 per kg of rice, then the price of rice will increase, the quantity supplied will be higher than the quantity demanded, so there will be a surplus rice market.

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