Government can support agricultural prices by

Question

Quizplus · Accepted Answer

Making it illegal to produce without a government-provided license alone or making it illegal to consume more than a specified amount could result in shortages or oversupply, which could lead to further price instability. Buying up all output that consumers do not buy at the supported price is not sustainable in the long term and could lead to a waste of resources. Thus, the best option would be a combination of both - making it illegal to produce without a government-provided license and buying up all output that consumers do not buy at the supported price. This ensures that the market is not flooded with oversupply, and the government takes responsibility for any unsold output.

Government Can Support Agricultural Prices by