Question 42
Natural Resources and PetroleumA change in the pump price of petrol in Nigeria has a direct effect on the
- A.prices of consumer goods
- B.prices of essential goods
- C.cost of raw materials
- D.cost of transportation.
Show the answer and explanation
Answer: D (cost of transportation.)
Explanation
Vehicles run on petrol, so a change in its price immediately changes transport fares and costs; other prices change later as a result.