Question

SCENARIO 3.3: Mustard During the summer, d and mayonnalse are substitutes. Mustard and relish are complements. Mustard is a normal good about 50% of all mustard was recalled by manufacturers and removed from store shelves.

Refer to Scenario 3.3. The government wants to protect consumers from rising food prices. Therefore, price restrictions are imposed on mustard cause producers, prohibiting them from raising the price of mustard. This will

A) an excess supply of mustard
B) a decrease in the supply of mustard
C) an increase in the demand for mustard.
D) an excess demand for mustard.

Answer 1

aww mustard

Step-by-step explanation:

Aww mustard! Come on man, now don’t put no mustard on that you need to put a little season on that thing! WHAT! Man come on get that pepper off there! Come on somebody come get this man! Come on now, come on get that pepper of there, that’s just too much doggone pepper. I dont wanna see this no more

Answer 2

Option (B) is correct.

Step-by-step explanation:

If the government imposes some of the restrictions on the producers of the mustard then this will maintain the price level for the consumers in the economy but at the same time producers wants to decrease the production of mustard and hence, there is a fall in the supply of mustard.

This is because of the less profit that producers obtained from selling the product at a lower prices. Therefore, there is no incentive for the producers to produce more at a lower prices.