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WAEC Economics 2021 Question 13

Question 13

Theory of Supply

Market supply may increase if there is an increase in the

  1. A.price of the product
  2. B.prices of factors of production.
  3. C.tax paid on raw materials
  4. D.subsidies on raw materials.
Show the answer and explanation

Answer: D (subsidies on raw materials.)

Explanation

Subsidies lower production costs, so supply increases.