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WAEC Economics 2025 Question 36

Question 36

Price Determination

If the price of cassava is fixed above the equilibrium, this policy is meant to

  1. A.favour consumers of cassava.
  2. B.discourage cassava farmers.
  3. C.reduce the quantity of cassava supplied.
  4. D.encourage cassava farmers.
Show the answer and explanation

Answer: D (encourage cassava farmers.)

Explanation

A minimum price above equilibrium guarantees farmers a good price.