Demand for lobster is relatively low

Assignment Help Business Economics

Reference no: EM13733358

During the spring when demand for lobster is relatively low, Maine lobster fishermen are able to sell their lobster catches for about $5.50 per pound. During the summer when demand for lobster is much higher, Maine lobster fishermen are able to sell their lobster catches for only about $4.00 per pound. It may seem strange that the market price is higher when demand is low than when demand is high. Use supply and demand analysis to describe why this situation exists.

Reference no: EM13733358

Questions Cloud

What might be wrong with their reasoning : Some business owners make a statement something to the effect, "We're too busy to bother with strategy. We have to take care of the present." What might be wrong with their reasoning?

What happens to consumer surplus : The demand curve for cookies is down word sloping, when the price of cookies is $2, the quantity demanded is 100. If the price rises to $3, what happens to consumer surplus?

The constant price elasticity of demand : The constant price elasticity of demand for cigarettes has been estimated to be -0.5. To reduce smoking by 50%, approximately how much tax needs to be added to a $1 pack?

International company different from domestic companies : What are the characteristics that make this international company different from domestic companies? Is this company successful? What makes this company a success or failure?

Demand for lobster is relatively low : During the spring when demand for lobster is relatively low, Maine lobster fishermen are able to sell their lobster catches for about $5.50 per pound. During the summer when demand for lobster is much higher, Maine lobster fishermen are able to sell ..

Supply and demand functions for two markets : Below are the supply and demand functions for two markets. One of the markets is for BMW automobiles, and the other is for a cancer-fighting drug, without which lung cancer patients will die. Briefly explain which diagram most likely represents which..

Definitely cause price to decrease : Which of the following would definitely cause price to decrease (if they occurred simultaneously)?

What is the minimum efficient scale for a firm run : Consider an industry in which two types of managers run firms, Genius and Ordinary. There is a fixed supply of 100 genius managers, whereas there is unlimited supply of ordinary managers. Both types of managers are willing to work for a salary of $14..

The pros and cons of the regional economic integration : Regional economic integration can be seen as an attempt to achieve additional gains from the free flow of trade and investment between countries beyond those attainable under international agreements, such as the WTO. What are the pros and cons of th..

User Account

All Pages