A severe drought has damaged this yearʹs lettuce crop. The initial effect on the lettuce market is a

Question

Quizplus · Accepted Answer

A severe drought damaging this year's lettuce crop would lead to a decrease in the supply of lettuce, not the demand. This would cause a leftward shift in the supply curve, causing prices to increase while quantity demanded decreases. Therefore, option B is the correct answer. Option A and D are incorrect as they imply a decrease in demand which is not affected by the drought. Option C is also incorrect as the drought's effect would not cause a decrease in demand but would cause a decrease in quantity demanded due to the increase in price caused by the decrease in supply.

A Severe Drought Has Damaged This Yearʹs Lettuce Crop