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Under distress sale, what is the relationship between marketed and marketable surpluses for a farmer?
Question

Under distress sale, what is the relationship between marketed and marketable surpluses for a farmer?

A.

Marketed surplus = 0

B.

Marketed surplus = Marketable surplus

C.

Marketed surplus > Marketable surplus

D.

Marketed surplus < Marketable surplus

Correct option is C

The correct answer is: (C) Marketed surplus > Marketable surplus
Explanation
In a distress sale, a farmer is compelled to sell more produce than he ideally wants to, often due to urgent needs like debt repayment, medical emergencies, or lack of storage.
Hence, the marketed surplus (actual quantity sold) becomes greater than the marketable surplus (quantity intended for sale after personal needs).
Important Points:
  • Marketed Surplus: The actual quantity sold in the market.

  • Marketable Surplus: The portion of produce remaining after meeting the family’s consumption and other needs.

  • Distress Sale Situation: Forces farmers to sell even the portion meant for home use, leading to marketed surplus exceeding marketable surplus.​

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