Economics
WAEC 2021
An increase in market supply is caused by the following factors except_________
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A.
An improvement in innovation and technology.
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B.
An increase in the price of the commodity
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C.
A reduction in the cost of raw materials.
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D.
A favourable weather condition.
Correct Answer: Option B
Explanation
An increase in market supply refers to a rightward shift of the supply curve, caused by non-price factors such as better technology, lower raw material costs, or favorable weather. However, a higher price leads to an increase in quantity supplied (a movement along the curve), not an actual increase in supply.
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