WAEC 2019 Economics · Question 41
Which of the following factors is not a condition for a change in the supply of a commodity
Options
- A.improved technoly
- B.cost of production
- C.the price of the commodity
- D.government tax policies
Answer: C. the price of the commodity
Explanation written with AI and checked against the answer key
Analyze the question: The question asks which factor is not a condition (determinant) of supply. In economics, we separate:
- Change in quantity supplied: caused only by a change in the commodity's own price (a movement along the supply curve).
- Change in supply: caused by other factors, which shift the whole supply curve.
Explain the concept: The conditions of supply (the factors that shift the supply curve) include:
- Technology
- Cost of production (wages, raw materials, rent)
- Government policies (taxes, subsidies)
- Number of firms in the industry
- Weather and natural conditions (especially for agricultural goods)
- Prices of related goods
- Expectations of future prices
Solution, option by option:
- A. Improved technology: lowers production costs and increases output at every price, so the supply curve shifts right. This is a condition of supply.
- B. Cost of production: higher costs reduce supply, and lower costs increase it. This is a condition of supply.
- C. The price of the commodity: a change in the commodity's own price only moves us along the same supply curve, giving a change in quantity supplied, not a change in supply. This is not a condition of supply.
- D. Government tax policies: taxes raise costs and subsidies lower them, so the curve shifts. This is a condition of supply.
Exam tip: Remember the phrase "own price = move along, anything else = shift." WAEC often tests the difference between change in supply (shift) and change in quantity supplied (movement along the curve). The same idea applies to demand.
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