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WAEC Economics 2021 Objective — Question 6

Question 6 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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6. An increase in rice harvest, all things being equal, may cause

  • A. price to increase substantially.
  • B. price to fall substantially.Correct
  • C. demand to fall substantially.
  • D. farmer's incomes to be more than doubled.

Explanation

A bumper harvest increases supply; with demand unchanged, the excess supply drives the price down substantially.

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