passwella.
Menu

WAEC Economics 2024 Question 11

Question 11

Theory of Demand

The diagram below shows the demand for milk. The movement from points x to z might have been caused by

Diagram for this question
  1. A.a change in taste in favour of milk.
  2. B.a decrease in price of milk.
  3. C.an increase in income of consumers.
  4. D.a favourable weather condition.
Show the answer and explanation

Answer: B (a decrease in price of milk.)

Explanation

x and z are on the same curve D0; moving down it to a larger quantity is caused by a fall in the price of milk.