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

Question

Quizplus · Accepted Answer

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.

Suppose Bad Weather and Pollution Dramatically Reduce the Supply of Crawfish