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WAEC Economics 2017 Question 13

Question 13

Theory of Supply

Increase in the supply of a product can be caused by

  1. A.change in tastes and fashion of consumers.
  2. B.increase in the incomes of consumers.
  3. C.a fall in the cost of production.
  4. D.increase in the price of a product.
Show the answer and explanation

Answer: C (a fall in the cost of production.)

Explanation

Lower costs make production more profitable, so supply increases (the curve shifts right).