Determine the equilibrium price of lobsters and

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Reference no: EM13451791

Answer a, b, c, and d using the following information:

Suppose that the supply schedule of Maine lobsters is as follows:

Price of lobster Quantity of lobster supplied

(per pound) (pounds)

$ 25 800

$ 20 700

$ 15 600

$ 10 500

$ 5 400

Suppose that Maine lobsters can be sold only in the United States. The U.S. demand schedule for Maine lobsters is as follows:

Price of lobster Quantity of lobster demanded

(per pound) (pounds)

$ 25 200

$ 20 400

$ 15 600

$ 10 800

$ 5 1,000

a. Looking at both the schedules of supply and demand, as well as the graph of the demand and supply curve for MaineLobsters, what is the equilibrium price of lobsters and the equilibrium quantity of lobsters demanded and supplied at that price?

b. Now, suppose that Maine lobsters can also be sold in France.The French demand schedule for Maine lobsters is asfollows:

Price of lobster Quantity of lobster demanded

(per pound) (pounds)

$ 25 100

$ 20 300

$ 15 500

$ 10 700

$ 5 900

What is the demand schedule for Maine lobsters now thatFrench consumers can also buy them?

c. Using the combined U.S. and French demand schedule, the U.S. demand schedule and the supply schedule, and the graph below, analyze the change in the market for lobsters. (hint: use the 10 question Worksheet approach) Explain your analysis and answer these two questions.

1. What will happen to the price at which fishermen can sell lobster?

2. What will be the final output of lobsters?

d. What will happen to the price paid by U.S. consumers?

What will happen to the quantity consumed by U.S. consumers?

Reference no: EM13451791

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