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WAEC Economics 2021 Question 14

Question 14

Price Determination

Governments can increase farmers' incomes by

  1. A.fixing maximum prices.
  2. B.fixing minimum prices.
  3. C.encouraging them to produce surplus output.
  4. D.increasing taxes on inputs.
Show the answer and explanation

Answer: B (fixing minimum prices.)

Explanation

A guaranteed minimum price protects farmers' income.