Can an adjective modify another adjective?
IMO an adverb should modify an adjective....
agrarian based is a adjective....modifying the economies....and former is an adjective...which is correct...
Therefore formerly is correct and former is incorrect...so option B C D are out
among A and E ...A is better...in E comma are not needed..

Expert please comment on my undertsanding

The adjective "former" refers to "economies", not "agrarian-based". It is not meant that the economies were formerly agrarian based (but they no longer are). So adjective "former" is correct.

Although Ghana is a relatively small country its economic environment is similar to several other developing countries in Africa, Latin America, the Caribbean, and parts of Asia where formerly agrarian-based economies are now shifting to industrial and service-based economies.

A) and parts of Asia whereformerly agrarian-based economies are now shifting

B) and parts of Asia where former agrarian-based economies are now shifting
--> correct.

C) parts of Asia where former agrarian-based economies are now shifting
--> lack of "and"

D) and parts of Asia where former agrarian-based economies now shift

E) and parts of Asia where formerly, agrarian-based economies, are now shifting
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GMATNinja

I am still confused between A & B
Adverb + Adjective or Adjective + Adjective

Former agrarian-based economies = agrarian based former economies are now shifting to industrial based former economies

formerly agrarian-based economies = Previously agrarian economies are now shifting to industrial based former economies

Confused soul needs clarification and support
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Can some expert offer more detailed explanation in choosing between Former vs Formerly...

Although Ghana is a relatively small country its economic environment is similar to several other developing countries in Africa, Latin America, the Caribbean, and parts of Asia where formerly agrarian-based economies are now shifting to industrial and service-based economies.

Confused between A and B? Hope my explanation below helps you get some clarity.

A) and parts of Asia where formerly agrarian-based economies are now shifting-

Theory: adverbs are words that describe or modify verbs,adjectives, other adverbs or clauses. Adverbs generally answer one of these four questions about entity they modify: How? When? Where and Why?

The role played by the word formerly logically referring to economies makes its usage wrong in this sentence. Ask yourself does formerly answer the questions-How? When? Where and Why?

The correct form is adjective former, which describes economies.

B) and parts of Asia where former agrarian-based economies are now shifting

C)missing parts of Asia where former agrarian-based economies are now shifting- in a parallel list the last entity is always preceded by comma+AND

D) and parts of Asia where former agrarian-based economies now shift- the correct form is now shifting to

E) and parts of Asia where formerly, agrarian-based economies, are now shifting- commas not required.
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