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JAMB Economics 2023 past questions and answers

1 questions. Try each one, then open the answer to check yourself and read the explanation.

Question 26

Theory of Supply

In the above diagram, 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
Show the answer and explanation

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

Explanation

S1 to S2 is a leftward shift of supply. Taxes and dearer inputs (including labour) shift supply. A change in the price of maize itself only causes a movement along the supply curve, not a shift.

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