Post Utme Christopher University 2023 Economics Question 36

Practice objective / multiple choice question 36 from the 2023 Post Utme Christopher University Economics examination.

Post Utme Christopher University 2023 Economics Objective / Multiple Choice
Question 36 POST_UTME_CHRISTOPHER_UNIVERSITY • 2023 • ECONOMICS • objective

The Nigerian government has implemented a policy to increase agricultural production by providing subsidies to farmers. U\sing the concept of elasticity of demand, explain how this policy affects the price of agricultural products.

Answer Options

A. The policy increases the price of agricultural products due to the inelastic demand.
Correct Answer B. The policy decreases the price of agricultural products due to the elastic demand.
C. The policy has no effect on the price of agricultural products.
D. The policy increases the price of agricultural products due to the elastic demand.
Correct Answer
B
Correct Option:
The policy decreases the price of agricultural products due to the elastic demand.

About This Question

This is Post Utme Christopher University 2023 Economics Question 36. It is one of the objective questions from the 2023 Post Utme Christopher University Economics examination.

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