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Question

what do ration shops sell? why do they sell it lower than a market price

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Solution

Ration shops are also known as Fair Price Shops that keep stock of food grains, sugar, kerosene oil for cooking.

These items are sold to people at a price lower than the market price because:

a. To enure food security to the poorer section of the society.

b. These ration shops are part of the public distribution system which is one of the measures sponsored by the government to counter poverty.

c. To counter food shortage.


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