Post Utme Babcock University 2019 Economics Question 11

Practice objective / multiple choice question 11 from the 2019 Post Utme Babcock University Economics examination.

Post Utme Babcock University 2019 Economics Objective / Multiple Choice
Question 11 POST_UTME_BABCOCK_UNIVERSITY • 2019 • ECONOMICS • objective

Agricultural mechanization in Nigeria has been hindered by the high \cost of machinery and maintenance. However, the government has introduced a subsidy program to reduce the \cost of machinery. U\sing the concept of elasticity of demand, explain how the subsidy program will affect the demand for agricultural machinery.

Answer Options

A. The demand for agricultural machinery will increase, but the elasticity of demand will be inelastic.
B. The demand for agricultural machinery will decrease, and the elasticity of demand will be elastic.
Correct Answer C. The demand for agricultural machinery will increase, and the elasticity of demand will be elastic.
D. The demand for agricultural machinery will decrease, and the elasticity of demand will be inelastic.
Correct Answer
C
Correct Option:
The demand for agricultural machinery will increase, and the elasticity of demand will be elastic.

About This Question

This is Post Utme Babcock University 2019 Economics Question 11. It is one of the objective questions from the 2019 Post Utme Babcock University Economics examination.

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