Neco 2025 Agricultural Science Question 13
Practice objective / multiple choice question 13 from the 2025 Neco Agricultural Science examination.
A farmer produces 8 tonnes of groundnut. The current market price is ₦150,000 per tonne. Two marketing options are considered:\n\nOption A: Increase the selling price by 10 % (price becomes 1.10 × ₦150,000). The price elasticity of demand for groundnut is -1.5, so the quantity demanded changes by \(\%\Delta Q = \text{elasticity}\times\%\Delta P\).\n\nOption B: Add value‑added processing that raises the price by 20 % but incurs a processing cost of ₦15,000 per tonne and reduces the marketable quantity by 25 %.\n\nWhich option gives the higher net revenue and by how much (in ₦)?
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About This Question
This is Neco 2025 Agricultural Science Question 13. It is one of the objective questions from the 2025 Neco Agricultural Science examination.
Difficulty level: Hard .
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