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. the equilibrium price to either increase, decrease, or remain the same and the equilibrium quantity to decrease.
B. the equilibrium price to decrease. The equilibrium quantity could have increased, decreased, or remained the same.
C. both the equilibrium price and quantity to decrease.
D. the equilibrium price to increase and the equilibrium quantity to decrease.
Answer: A
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The fact that the fourth plate from the "All You Can Eat Country Buffet" generated more satisfaction than the fifth plate is an example of
A) increasing marginal utility. B) diminishing marginal utility. C) diminishing total utility. D) the "paradox of value."
The international bank deposit and loan market is called the
A) International Banking Facilities. B) Eurocurrency market. C) Foreign exchange market. D) IMF loans and deposits.