Lettuce and spinach are substitutes while lettuce and tomatoes are complements. Lettuce is a normal good. Twenty per cent (20%) of the lettuce crop is destroyed by floods in Mpumalanga. Use graphs throughout to illustrate your answers. 2.1.1 As a result of the floods, you would expect: (a) the price of lettuce to increase, the supply of lettuce to increase and the quantity of lettuce demanded to decrease (b) the supply of lettuce to decrease, the price of lettuce to increase and the equilibrium quantity of lettuce to decrease (c) the price of lettuce to increase and both the quantity of lettuce supplied and the quantity of lettuce demanded to increase

Lettuce and spinach are substitutes while lettuce and tomatoes are complements. Lettuce is a normal good. Twenty per cent (20%) of the lettuce crop is destroyed by floods in Mpumalanga. Use graphs throughout to illustrate your answers. 2.1.1 As a result of the floods, you would expect: (a) the price of lettuce to increase, the supply of lettuce to increase and the quantity of lettuce demanded to decrease (b) the supply of lettuce to decrease, the price of lettuce to increase and the equilibrium quantity of lettuce to decrease (c) the price of lettuce to increase and both the quantity of lettuce supplied and the quantity of lettuce demanded to increase

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter5: Markets In Motion And Price Controls

Section: Chapter Questions

Problem 10P

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