Suppose bad weather and pollution dramatically reduce the supply of lobster in Nova Scotia next year.This would MOST likely lead to _____ in the marginal utility of lobster consumption.
A) an increase
B) a decrease
C) no change
D) substitution and income effects

Question

Quizplus · Accepted Answer

A reduction in supply typically leads to higher prices, which can increase the marginal utility of lobster consumption as each unit becomes more valuable to consumers.

Suppose Bad Weather and Pollution Dramatically Reduce the Supply of Lobster