Question
Suppose that tomatoes are a normal good. Also suppose that tomatoes and lettuce are complements. Now, suppose there is a frost in Texas, damaging the
Suppose that tomatoes are a normal good. Also suppose that tomatoes and lettuce are complements. Now, suppose there is a frost in Texas, damaging the tomato crop. We can conclude that
a. the equilibrium price and equilibrium quantity of tomatoes will rise.
B the equilibrium price and equilibrium quantity of tomatoes will fall.
c. the equilibrium price will fall and the equilibrium quantity of tomatoes will rise.
d. the equilibrium price will rise and the equilibrium quantity of tomatoes will fall.
e. the equilibrium price will rise but there is an uncertain effect on the equilibrium quantity
of tomatoes
In the market for lupines, initially the equilibrium price was 10 per lupine and the equilibrium quantity was 200 million lupines. The following year the equilibrium price was 14 per lupine and the equilibrium quantity was 160 million lupines. This change could have been the result of
a. a decrease in wages.
b. an increase in taxes levied on producers of lupines.
c. an increase the price of a complement.
d. an increase in income.
e. a decrease in the price of a substitute.
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