Post Utme Covenant University 2023 Economics Question 30

Practice objective / multiple choice question 30 from the 2023 Post Utme Covenant University Economics examination.

Post Utme Covenant University 2023 Economics Objective / Multiple Choice
Question 30 POST_UTME_COVENANT_UNIVERSITY • 2023 • ECONOMICS • objective

The government of Nigeria has implemented a policy to increase the production of rice in the country. The policy includes providing subsidies to farmers, improving irrigation systems, and increa\sing the availability of fertilizers. However, the policy has also led to an increase in the price of rice. U\sing the concept of elasticity of supply, explain why the price of rice has increased.

Answer Options

A. The price of rice has increased due to the increase in supply caused by the government's policy.
Correct Answer B. The price of rice has increased due to the decrease in supply caused by the government's policy.
C. The price of rice has increased due to the increase in production \costs caused by the government's policy.
D. The price of rice has increased due to the decrease in demand caused by the government's policy.
Correct Answer
B
Correct Option:
The price of rice has increased due to the decrease in supply caused by the government's policy.

About This Question

This is Post Utme Covenant University 2023 Economics Question 30. It is one of the objective questions from the 2023 Post Utme Covenant University Economics examination.

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