Economics

Price that helps to solve the problem of shortage of food during adverse conditions is called


ANSWER

Minimum support price


SOLUTION

The Agriculture Department defines food insecurity as "limited or uncertain availability of nutritionally adequate and safe foods or limited or uncertain ability to acquire acceptable foods in socially acceptable ways." This is done to distribute foodgrains in the deficit areas and among the poorer strata of society at a price lower than the market price also known as Issue Price. This also helps resolve the problem of shortage of food during adverse weather conditions or during the periods of calamity. The scarcity of food is caused by economic, environmental and social factors such as crop failure, overpopulation and poor government policies are the main cause of food scarcity in most countries. Food availability is defined as sufficient quantities of food. Appropriate quality, supplied through domestic production or. imports, including food aid. 

Hence, option ‘b’ is the correct answer.

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