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Which of the following will cause an increase in cost of production?

Which of the following will cause an increase in cost of production?
Take Free Practice Test On 2026 JAMB UTME, Post UTME, WAEC SSCE, GCE, NECO SSCE
  • A Hyper-inflation
  • B Cost push inflation
  • C Structural inflation
  • D Demand pull inflation
Correct Answer: Option B
Explanation:
Cost push inflation occurs when overall prices increase(inflation) due to increases in the cost of wages and raw materials. It can also occur when higher costs of production decrease the aggregate supply in the economy.

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