JAMB 2024 Economics · Question 40

The revolution of Cassava from ordinary food crop to export crop will lead to

Options

  1. A.increase in production of other crops
  2. B.increase in the prices of cassava products
  3. C.decrease in production of local starch
  4. D.decrease In production of cassava

Answer: B. increase in the prices of cassava products

Explanation written with AI and checked against the answer key

Analyze the question: Cassava is changing from an ordinary food crop (grown mainly for local consumption) to an export crop (sold abroad for foreign exchange). We need to find the likely economic effect.

Concept: When a commodity gains an export market, demand for it rises because foreign buyers join local buyers. In economics, an increase in demand, with supply unchanged in the short run, pushes prices up. Farmers also respond to the higher prices and returns by producing more of the crop.

Step-by-step solution:

  • A. Increase in production of other crops: Unlikely. Farmers would shift land and resources toward cassava because it is now more profitable, so production of other crops would tend to fall or stay the same.
  • B. Increase in the prices of cassava products: Likely. Export demand adds to domestic demand, so cassava and products made from it (garri, flour, starch) become more expensive. ✔
  • C. Decrease in production of local starch: Not the direct effect. Cassava starch is itself a cassava product, and higher demand would encourage more processing, not less.
  • D. Decrease in production of cassava: Wrong. Higher demand and better returns encourage farmers to produce more cassava.

Tip: For "change from local to export" questions, think of demand first: more buyers means higher demand, which means higher prices and higher output. Options that say production will fall are usually wrong in this situation.

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