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JAMB Economics 1982 Question 35

Question 35

Price Determination

Market for maize. In the above diagram (1 denotes initial position; 2 denotes position after change), which of the following is NOT likely to be a factor causing the change from S1 to S2?

Diagram for this question
  1. A.An imposition of a unit tax on maize
  2. B.A decrease in the supply of labour
  3. C.An increase in the price of other inputs
  4. D.An increase in the price of maize
  5. E.Unfavourable weather condition.
Show the answer and explanation

Answer: D (An increase in the price of maize)

Explanation

A change in the good's own price moves along the supply curve; it does not shift it. The other options raise costs or cut output and shift supply to the left.