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WAEC Economics 2020 Objective — Question 13

Question 13 of 50 from the West African Examinations Council (WAEC) Economics 2020 Objective paper, with the correct answer and a full explanation.

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If an increase in the price of crude oil led to an increase in the prices of kerosene and grease, then kerosene and grease are in

  • A. joint supplyCorrect
  • B. competitive supply
  • C. market supply
  • D. composite supply

Explanation

Kerosene and grease are joint products derived from crude oil; when the price of crude oil rises, the supply/prices of its joint products move together (joint supply).

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