This topic contains a solution. Click here to go to the answer

Author Question: Refer to Scenario 3.2 below to answer the question(s) that follow. SCENARIO 3.2: Lettuce and spinach ... (Read 655 times)

lindiwe

  • Hero Member
  • *****
  • Posts: 577

Refer to Scenario 3.2 below to answer the question(s) that follow.



SCENARIO 3.2: Lettuce and spinach are substitutes. Lettuce and tomatoes are complements. Lettuce is a normal good. During the winter, about 20% of the lettuce crop was destroyed by flooding.





Refer to Scenario 3.2. If at the same time that part of the lettuce crop was destroyed, consumer income also decreased, then, 
ceteris paribus, in the market for lettuce this would have caused


◦ both the equilibrium price and quantity to decrease.
◦ the equilibrium price to increase and the equilibrium quantity to decrease.
◦ the equilibrium price to decrease. The equilibrium quantity could have increased, decreased, or remained the same.
◦ the equilibrium price to either increase, decrease, or remain the same and the equilibrium quantity to decrease.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question

peilian

  • Sr. Member
  • ****
  • Posts: 316
the equilibrium price to either increase, decrease, or remain the same and the equilibrium quantity to decrease.



dollx

  • Hero Member
  • *****
  • Posts: 558

Refer to Scenario 3.2 below to answer the question(s) that follow.



SCENARIO 3.2: Lettuce and spinach are substitutes. Lettuce and tomatoes are complements. Lettuce is a normal good. During the winter, about 20% of the lettuce crop was destroyed by flooding.





Refer to Scenario 3.2. The government wants to protect consumers from rising food prices. Therefore, price restrictions are imposed on lettuce growers prohibiting them from raising the price of lettuce. This will cause


◦ an excess supply of lettuce.
◦ an excess demand for lettuce.
◦ an increase in the demand for lettuce.
◦ a decrease in the supply of lettuce.



quynhmickitran

  • Sr. Member
  • ****
  • Posts: 330



 

Did you know?

Only one in 10 cancer deaths is caused by the primary tumor. The vast majority of cancer mortality is caused by cells breaking away from the main tumor and metastasizing to other parts of the body, such as the brain, bones, or liver.

Did you know?

Since 1988, the CDC has reported a 99% reduction in bacterial meningitis caused by Haemophilus influenzae, due to the introduction of the vaccine against it.

Did you know?

It is believed that humans initially contracted crabs from gorillas about 3 million years ago from either sleeping in gorilla nests or eating the apes.

Did you know?

Less than one of every three adults with high LDL cholesterol has the condition under control. Only 48.1% with the condition are being treated for it.

Did you know?

The modern decimal position system was the invention of the Hindus (around 800 AD), involving the placing of numerals to indicate their value (units, tens, hundreds, and so on).

For a complete list of videos, visit our video library