Refer to Scenario 3

question 255

Multiple Choice

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

• A) both the equilibrium price and quantity to decrease.
• B) the equilibrium price to increase and the equilibrium quantity to decrease.
• C) the equilibrium price to decrease. The equilibrium quantity could have increased, decreased, or remained the same.
• D) the equilibrium price to either increase, decrease, or remain the same and the equilibrium quantity to decrease.

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Definitions:

Mean

The average of a set of numbers, calculated by summing all the numbers and then dividing by the count of those numbers.

Frequency Distribution

A summary of data showing how often each value occurs.

Mean

The average value obtained by dividing the sum of all values in a data set by the number of values.

Set of Data

An assembly of quantitative or qualitative values gathered for analysis or observation.