WAEC Economics 2021 Objective — Question 8
Question 8 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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8. What will be the reaction of consumers in a market if there is a fall in the price of the substitute of commodity X?
- A. Price of commodity X will increase
- B. Demand for the substitute of commodity X will decrease
- C. Demand for commodity X will decreaseCorrect
- D. Supply of both commodity X and its substitute will increase
Explanation
A cheaper substitute draws consumers away from commodity X, so demand for X decreases.
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