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Statement: The vegetable traders feel that the prices of onion will again go up shortly in the State 'P'

Courses of Action:

1. The 'P' State Government should purchase and store sufficient quantity of onion in advance to control prices.

2. The 'F' State Government should make available network of fair price shops for the sale of onions during the period of shortage.

  • A.Only I follows
  • B.Only II follows
  • C.Either I or II follows
  • D.Neither I nor II follows
  • E.Both I and II follow

Answer: E

Correct answer: Both I and II follow

Both courses attack the expected rise in price. Buying and storing onions beforehand gives the government a stock to release, and fair-price shops put that stock within reach of ordinary buyers when the shortage comes. Both follow.

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