Post Utme Aaua 2019 Economics Question 26

Practice objective / multiple choice question 26 from the 2019 Post Utme Aaua Economics examination.

Post Utme Aaua 2019 Economics Objective / Multiple Choice
Question 26 POST_UTME_AAUA • 2019 • ECONOMICS • objective

The government of Nigeria has introduced a new policy to increase agricultural production. The policy includes providing subsidies to farmers, improving irrigation facilities, and increa\sing the use of fertilizers. However, the policy also includes a provision to increase the price of fertilizers by 20%. What is the likely effect of this policy on the demand for fertilizers?

Answer Options

A. The demand for fertilizers will increase
Correct Answer B. The demand for fertilizers will decrease
C. The demand for fertilizers will remain unchanged
D. The demand for fertilizers will increase in the short run but decrease in the long run
Correct Answer
B
Correct Option:
The demand for fertilizers will decrease

About This Question

This is Post Utme Aaua 2019 Economics Question 26. It is one of the objective questions from the 2019 Post Utme Aaua Economics examination.

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