WAEC Economics 2020 Objective — Question 16
Question 16 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 a beef market is in equilibrium at $4.00 per kg, and an increase in price to $6.00 per kg may cause
- A. surplus in the marketCorrect
- B. shortage in the market
- C. black market to come into operation
- D. rationing to be introduced
Explanation
At a price above equilibrium, quantity supplied exceeds quantity demanded, resulting in a surplus (excess supply) in the market.
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