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. As a result of the flooding during the winter, you would expect that

Question

Quizplus · Accepted Answer

The flooding would decrease the supply of lettuce, leading to an increase in price. However, the quantity demanded would decrease as a result of the higher price, not the demand itself. Demand refers to the willingness and ability of consumers to purchase a good at various prices, which is not directly affected by the supply shock.