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 quantity of spinach will ________.

Question

Quizplus · Accepted Answer

Since lettuce and spinach are substitutes, a decrease in the supply of spinach (due to the beetle destruction) would increase the demand for lettuce, raising its price. The quantity of spinach would fall because of the reduced supply.

Lettuce and Spinach Are Substitute Goods