Neco Model Questions Vol1 2024 Economics Question 22

Practice objective / multiple choice question 22 from the 2024 Neco Model Questions Vol1 Economics examination.

Neco Model Questions Vol1 2024 Economics Objective / Multiple Choice Easy Difficulty
Question 22 NECO_MODEL_QUESTIONS_VOL1 • 2024 • ECONOMICS • objective

The price of wheat falls because of a good harvest, which raises the demand for bread. At the same time a severe drought reduces wheat output, shifting the wheat supply curve leftward. Assuming wheat is the only input for bread, what is the likely direction of change in the equilibrium price and the equilibrium quantity of bread?

Answer Options

Correct Answer A. Price rises; quantity indeterminate
B. Price rises; quantity rises
C. Price falls; quantity indeterminate
D. Price falls; quantity falls
Correct Answer
A
Correct Option:
Price rises; quantity indeterminate

About This Question

This is Neco Model Questions Vol1 2024 Economics Question 22. It is one of the objective questions from the 2024 Neco Model Questions Vol1 Economics examination.

Difficulty level: Easy .

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