Lettuce and Spinach Are Substitute Goods

question 70

Multiple Choice

Lettuce and spinach are substitute goods.All else equal,if a spinach beetle destroys half of the nation's spinach crop,we predict that the equilibrium price of lettuce will ________ and the equilibrium quantity of spinach will ________.

• A) rise; rise
• B) rise; fall
• C) fall; rise
• D) fall; fall

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Definitions:

Contribution

A payment or effort made towards a collective goal or to support a cause.

Insurable Interest

A legitimate stake or investment in the life, property, or well-being of the subject matter of an insurance policy, such that the policyholder would suffer financial loss if the insured event occurs.

Life Insurance

An insurance policy that pays out a sum of money on the death of the insured person or after a set period.

Repaid

The action of paying back money that has been borrowed, often including an interest component.