How surplus created as a result of price floor imposed by government i

1.	How surplus created as a result of price floor imposed by government is utilised ?
Answer» Solution :PRICE floor means fixation of pricehigher than the market equilibrium price. It creates excess supply or surplus in themarket. The UNSOLD stock is bought by the government and kept in its buffer stocks. It is used for distribution through fair price shops. It MAY be used to MEET consumption requirements during natural calamities like floods, earthquake etc. It is also used by the government for giving to the workers under 'Food for work'programme and other such special employment schemes launched in India.

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