Which one of the following will cause a rise in the equilibrium price of rice when the demand for rice remains the same? - Economics

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MCQ

Which one of the following will cause a rise in the equilibrium price of rice when the demand for rice remains the same?

Options

  • Government subsidy to rice farmers.

  • Successful advertising campaign for rice.

  • Improved rice farming methods.

  • Poor weather conditions.

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Solution

Poor weather conditions.

Explanation:

Rice productivity will fall due to unfavourable weather conditions, shifting the supply curve to the left. Equilibrium prices will rise when the supply curve shifts to the left.

Concept: Movements Along and Shifts in Supply Curve
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2022-2023 (March) Official
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