An increase in the demand for lobster due to changes in consumer tastes, accompanied by a decrease in the supply of lobster as a result bad weather reducing the number of fishermen trapping lobster, will result in
A) a decrease in the equilibrium quantity of lobster and no change in the equilibrium price.
B) an increase in the equilibrium price of lobster and no change in the equilibrium quantity.
C) a decrease in the equilibrium quantity of lobster; the equilibrium price may increase or decrease.
D) an increase in the equilibrium price of lobster; the equilibrium quantity may increase or decrease.
D
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Describe the channels through which an open market purchase of bonds by the Fed affects output in a closed economy
What will be an ideal response?
You're willing to wait in line an hour to ride the new roller coaster at the amusement park, but your friend has no interest in waiting that long. This indicates that the ________ cost of time to you is different from that to your friend
a. sunk b. variable c. opportunity d. average
Rapid growth of government spending in Latin America in the 1970s led to
A) the Debt Crisis. B) rapid economic growth. C) direct foreign investment. D) capital outflows.
Answer the following questions true (T) or false (F)
1. As output increases, the distance between average total cost and average variable cost increases. 2. In the long run the relevant cost is total cost. 3. If the long-run average total cost curve is downward-sloping, then the firm is experiencing decreasing returns to scale.