Post Utme Babcock University 2017 Economics Question 20

Practice objective / multiple choice question 20 from the 2017 Post Utme Babcock University Economics examination.

Post Utme Babcock University 2017 Economics Objective / Multiple Choice
Question 20 POST_UTME_BABCOCK_UNIVERSITY • 2017 • ECONOMICS • objective

The government of Nigeria has introduced a new agricultural policy aimed at increa\sing food production. The policy includes a 10% subsidy on fertilizers for farmers. Assuming the demand for fertilizers is perfectly inelastic, what is the expected effect on the price of fertilizers?

Answer Options

A. The price of fertilizers will increase.
Correct Answer B. The price of fertilizers will decrease.
C. The price of fertilizers will remain unchanged.
D. The effect on the price of fertilizers is uncertain.
Correct Answer
B
Correct Option:
The price of fertilizers will decrease.

About This Question

This is Post Utme Babcock University 2017 Economics Question 20. It is one of the objective questions from the 2017 Post Utme Babcock University Economics examination.

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