Post Utme Aaua 2018 Economics Question 5

Practice objective / multiple choice question 5 from the 2018 Post Utme Aaua Economics examination.

Post Utme Aaua 2018 Economics Objective / Multiple Choice
Question 5 POST_UTME_AAUA • 2018 • ECONOMICS • objective

A government in Nigeria is considering implementing a policy to increase the production of wheat. Determine the effect of the policy on the equilibrium price and quantity of wheat in the market, assuming the demand and supply functions are: Demand: Qd = 100 - 2P, Supply: Qs = 2P - 50.

Answer Options

A. Price increases, quantity decreases
Correct Answer B. Price decreases, quantity increases
C. Price remains the same, quantity increases
D. Price remains the same, quantity decreases
Correct Answer
B
Correct Option:
Price decreases, quantity increases

About This Question

This is Post Utme Aaua 2018 Economics Question 5. It is one of the objective questions from the 2018 Post Utme Aaua Economics examination.

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