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WAEC Economics 2021 Objective — Question 13

Question 13 of 50 from the West African Examinations Council (WAEC) Economics 2021 Objective paper, with the correct answer and a full explanation.

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13. Market supply may increase if there is an increase in the

  • A. price of the product.
  • B. prices of factors of production.
  • C. tax paid on raw materials.
  • D. subsidies on raw materials.Correct

Explanation

Subsidies on raw materials lower production costs, giving producers more funds to increase input and output — increasing supply.

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