Refer to Scenario 3

question 134

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. 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

• A) an excess supply of lettuce.
• B) an excess demand for lettuce.
• C) an increase in the demand for lettuce.
• D) a decrease in the supply of lettuce.

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Definitions:

Product Liability

The legal liability a manufacturer or trader incurs for producing or selling a faulty product.

Negligence

The failure to exercise the care that a reasonably prudent person would exercise in similar circumstances.

Garnishment

A proceeding in which a creditor legally seizes a portion of a debtor's property, such as wages, that is in the possession of a third party, such as an employer.

Misrepresentation

A false statement or lie that deceives, misleads, or distorts the truth.