Post Utme Lead City University 2025 Economics Question 38

Practice objective / multiple choice question 38 from the 2025 Post Utme Lead City University Economics examination.

Post Utme Lead City University 2025 Economics Objective / Multiple Choice
Question 38 POST_UTME_LEAD_CITY_UNIVERSITY • 2025 • ECONOMICS • objective

Consider a country with a mixed economy, where the government provides subsidies to farmers to increase agricultural production. If the demand for agricultural products is elastic, what is the likely effect of the subsidy on the price of these products?

Answer Options

A. The price of agricultural products will increase due to the subsidy.
Correct Answer B. The price of agricultural products will decrease due to the subsidy.
C. The price of agricultural products will remain unchanged due to the subsidy.
D. The subsidy will have no effect on the price of agricultural products.
Correct Answer
B
Correct Option:
The price of agricultural products will decrease due to the subsidy.

About This Question

This is Post Utme Lead City University 2025 Economics Question 38. It is one of the objective questions from the 2025 Post Utme Lead City University Economics examination.

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