WAEC Economics 2025 Objective — Question 14
Question 14 of 51 from the West African Examinations Council (WAEC) Economics 2025 Objective paper, with the correct answer and a full explanation.
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An increase in the price of a factor of production in an industry will cause
- A. supply of goods to decrease.Correct
- B. more firms to enter the market.
- C. the government to increase taxes.
- D. the quantity supplied of the factor input to decrease.
Explanation
Higher factor prices raise production costs, causing firms to reduce output and the supply curve to shift leftward.
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