WAEC Economics 2023 Objective — Question 12
Question 12 of 50 from the West African Examinations Council (WAEC) Economics 2023 Objective paper, with the correct answer and a full explanation.
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If the government stops subsidy on cocoa production, the supply curve of cocoa will A. shift to the right. B. become vertical. C. shift to the left. D. remain unchanged.
- A. shift to the right
- B. become vertical
- C. shift to the leftCorrect
- D. remain unchanged
Explanation
Removing a subsidy raises the cost of production, causing the price of the goods to rise; this is shown as a leftward shift in the supply curve, ceteris paribus.
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