Answer to Question #183645 in Microeconomics for Nellie Ndala

Question

The floods that destroyed part of the lettuce crop would have caused: (3 marks)

(a) an increase in the demand for tomatoes

(b) a decrease in the demand for tomatoes

(c) an increase in the quantity of tomatoes demanded

(d) a decrease in the quantity of tomatoes demanded

Use graphs throughout to illustrate your answers.

Answer 1

a decrease in the quantity of tomatoes demanded

Lettuce crop and tomatoes are used together.

That's complimentary goods.

Meaning if lettuce crop is destroyed creating a shortage there will be a reduced demand of tomatoes also ... Causing a shift of demand curve. To indicate decrease in quantity demanded but price remains constants