Identify the correct sequence of events when a minimum support price is imposed:

(A) Government buys the surplus at the predetermined price.

(B) Situation of Surplus occurs due to imposition of floor price.

(C) Government sets a minimum price.

(D) Market equilibrium occurs by the intersection of demand and supply curves.

Choose the correct answer from the options given below:

Option 1 -> Incorrect sequence - starts with government buying before setting the price.

Option 2 -> Incorrect sequence - government buying occurs before setting minimum price.

Option 3 -> Incorrect sequence - surplus occurs before equilibrium and price setting.

Option 4 -> Correct sequence following the logical flow of minimum support price implementation.

Hence, Option 4: (D), (C), (B), (A) -> The correct sequence is: First, (D) market equilibrium exists where demand and supply curves intersect at equilibrium price. Then, (C) government intervenes by setting a minimum support price (floor price) above the equilibrium price. This leads to (B) a surplus situation because at the higher minimum price, quantity supplied exceeds quantity demanded. Finally, (A) government purchases the surplus at the predetermined minimum price to support producers and clear the excess supply. This sequence represents the logical chronology of events in agricultural price support mechanisms. -> correct