W(Chiczehroone of the following is an example of a price floor?

In economics, a price floor is a government-imposed lower limit on the price that may be charged for a particular good or service, typically set above the market-clearing price to protect producers [2]. The Minimum Support Price (MSP) in India is a classic example of a price floor [3]. It is the rate at which the government guarantees to purchase crops from farmers, ensuring they do not suffer from distress sales if market prices fall below this threshold [3]. Jowar is one of the 23 agricultural commodities for which the government sets these price floors annually. In contrast, the Maximum Retail Price (MRP) acts as a price ceiling (an upper limit), while subsidies for fertilizers and ration shop prices (Central Issue Price) represent fiscal transfers and subsidized consumer pricing respectively, rather than price floors [1].

Sources

1. [2] Microeconomics (NCERT class XII 2025 ed.) > Chapter 5: Market Equilibrium > 5.2.2 Price Floor > p. 85
2. [3] Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 9: Agriculture > MINIMUM SUPPORT PRICE > p. 328
3. [1] Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 9: Subsidies > 9.5.1 Food Corporation of India (FCI) > p. 293