Post Utme Abu 2021 Economics Question 11

Practice objective / multiple choice question 11 from the 2021 Post Utme Abu Economics examination.

Post Utme Abu 2021 Economics Objective / Multiple Choice
Question 11 POST_UTME_ABU • 2021 • ECONOMICS • objective

The government of Nigeria has introduced a new policy to increase agricultural production. The policy includes providing subsidies to farmers, improving irrigation systems, and increa\sing access to credit. 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 Abu 2021 Economics Question 11. It is one of the objective questions from the 2021 Post Utme Abu Economics examination.

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