Post Utme Uniosun 2020 Economics Question 11

Practice objective / multiple choice question 11 from the 2020 Post Utme Uniosun Economics examination.

Post Utme Uniosun 2020 Economics Objective / Multiple Choice
Question 11 POST_UTME_UNIOSUN • 2020 • ECONOMICS • objective

The government of Nigeria has introduced a new policy to increase agricultural production. 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%. What is the likely effect of this policy on the demand for fertilizers?

Answer Options

A. The demand for fertilizers will increase due to the increased price
Correct Answer B. The demand for fertilizers will decrease due to the increased price
C. The demand for fertilizers will remain the same due to the increased price
D. The demand for fertilizers will increase due to the increased access to credit
Correct Answer
B
Correct Option:
The demand for fertilizers will decrease due to the increased price

About This Question

This is Post Utme Uniosun 2020 Economics Question 11. It is one of the objective questions from the 2020 Post Utme Uniosun Economics examination.

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