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. The floods that destroyed part of the lettuce crop would have caused the equilibrium price of spinach to ________ and the equilibrium quantity of spinach to ________.

Question

Quizplus · Accepted Answer

Since lettuce and spinach are substitutes, a decrease in the supply of lettuce (due to flooding) would increase the demand for spinach, leading to an increase in both the equilibrium price and quantity of spinach.