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WAEC Economics 2021 Question 9

Question 9

Theory of Supply

An increase in market supply is caused by the following factors except

  1. A.an improvement in innovation and technology.
  2. B.an increase in the price of the commodity
  3. C.a reduction in the cost of raw materials.
  4. D.a favourable weather condition.
Show the answer and explanation

Answer: B (an increase in the price of the commodity)

Explanation

A rise in the good's own price increases quantity supplied, not supply.