There is an increase in the price of broccoli because of the disastrous weather that destroyed half of this year's spinach crop.Choose the statement that is correct.
A)The demand curve for broccoli shifted rightward and the cross elasticity of demand for broccoli with respect to the price of spinach is positive.
B)The demand curve for broccoli shifted rightward and the cross elasticity of demand for broccoli with respect to the price of spinach is negative.
C)The supply curve of broccoli shifted rightward and the cross elasticity of demand for broccoli with respect to the price of spinach is positive.
D)The supply curve of broccoli shifted rightward and the cross elasticity of demand for broccoli with respect to the price of spinach is negative.
E)The demand curve for broccoli shifted leftward and the cross elasticity of demand for broccoli with respect to the price of spinach is negative.

Question

Quizplus · Accepted Answer

The demand for broccoli increases (shifts rightward) as consumers look for substitutes due to the reduced availability of spinach, indicating that broccoli and spinach are substitutes, hence the positive cross elasticity of demand.

There Is an Increase in the Price of Broccoli Because