Asked by elizabeth odegard on May 10, 2024
Verified
Suppose bad weather and pollution dramatically reduce the supply of crawfish in Louisiana next year.This would MOST likely lead to _____ in the marginal utility of crawfish consumption.
A) an increase
B) a decrease
C) no change
D) substitution and income effects
Marginal Utility
The extra pleasure or benefit gained by a consumer from consuming an additional unit of a product or service.
Crawfish Consumption
The act of eating crawfish, which can be influenced by cultural, regional, or seasonal factors.
Pollution
The presence of contaminants in the natural environment that cause harm or discomfort to organisms and ecosystems.
- Pinpoint the elements that enhance or diminish the marginal utility associated with a product.
Verified Answer
PG
Philisa GqokomaMay 14, 2024
Final Answer :
A
Explanation :
When the supply of crawfish decreases due to bad weather and pollution, it becomes scarcer and more valuable to those who desire it. This scarcity increases the satisfaction or utility that consumers derive from each additional unit consumed, hence increasing the marginal utility of crawfish consumption.
Learning Objectives
- Pinpoint the elements that enhance or diminish the marginal utility associated with a product.