Post Utme Lead City University 2024 Economics Question 16

Practice objective / multiple choice question 16 from the 2024 Post Utme Lead City University Economics examination.

Post Utme Lead City University 2024 Economics Objective / Multiple Choice
Question 16 POST_UTME_LEAD_CITY_UNIVERSITY • 2024 • ECONOMICS • objective

The government of Nigeria has introduced a new policy to promote agricultural development in the country. 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% to reduce the subsidy burden. Assuming the demand for fertilizers is inelastic, what will be the effect of the price increase on the quantity of fertilizers demanded?

Answer Options

A. The quantity of fertilizers demanded will decrease by 10%
B. The quantity of fertilizers demanded will increase by 10%
Correct Answer C. The quantity of fertilizers demanded will remain the same
D. The quantity of fertilizers demanded will decrease by 20%
Correct Answer
C
Correct Option:
The quantity of fertilizers demanded will remain the same

About This Question

This is Post Utme Lead City University 2024 Economics Question 16. It is one of the objective questions from the 2024 Post Utme Lead City University Economics examination.

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