WAEC Economics 2025 Objective — Question 17
Question 17 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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If the price of cassava is fixed above the equilibrium, this policy is meant to
- A. discourage cassava farmers.
- B. favour consumers of cassava.
- C. encourage cassava farmers.
- D. reduce the quantity of cassava supplied.Correct
Explanation
A price floor (minimum price) above equilibrium is set to encourage farmers, but it also causes a surplus, effectively 'reducing' quantity that clears at equilibrium - per the answer key, it discourages farmers from raising quantity supplied at market clearing levels; official key: C in one part but confirmed answer is D per solution.
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