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WAEC Economics 2022 Question 10

Question 10

Theory of Supply

The supply curve of a locally-produced good may shift to the right if

  1. A.there is an increase in taxes on inputs
  2. B.government increases subsidies
  3. C.rural-urban migration is encouraged
  4. D.the price of the commodity increases
Show the answer and explanation

Answer: B (government increases subsidies)

Explanation

Subsidies lower costs, so more is supplied at every price.