Question

In a particular year, the price of wheat in market is Rs. 15 per kg and a farmer produces 100 kgs of wheat, In the next year the price of wheat has fallen to Rs.10 per kg and the farmer produces 120 kgs. If the government wishes to stabilize the income of the farmer, then what will be the minimum support price ?

1. Rs. 12 per kg

2. Rs 12. 5 per kg

3. Rs. 13 per kg

4. Rs. 13.5 per kg

Answer 1

Correct option: 2. Rs 12. 5 per kg

Explanation:

MSP should be 12.5 rs./kg to stabilize the income of the farmers, (as per the given data)