Lettuce and spinach are substitute goods.All else equal,if a spinach beetle destroys half of the nation's spinach crop,we predict that the equilibrium price of lettuce will ________ and the equilibrium price of spinach will ________.

Question

Quizplus · Accepted Answer

Since lettuce and spinach are substitute goods, a decrease in the supply of spinach (due to the beetle destruction) will increase the demand for lettuce, raising its price. Simultaneously, the reduced supply of spinach will also increase its price.

Lettuce and Spinach Are Substitute Goods