Question

Mary buys a bag of pulses worth ₹500 at ₹100 from the local ration shop. What happens to the remaining amount of ₹400?

• A. The shopkeeper pays the remaining amount.
• B. The government pays the remaining amount.
• C. Mary pays the remaning amount in installments.
• D. No one pays the remaining amount.

Answer 1

The correct option is B The government pays the remaining amount.

When a person purchases goods from a fair price shop, they get a subsidised price for the product. A subsidy is a payment that a government makes to a producer to supplement the market price of a commodity. The government subsidises essential food grains and groceries to ensure food security.