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High demand and low prices in the lobster market?
During a typical spring, when the lobster demand is relatively low, Maine's lobster fishermen can usually sell their lobster catches for around $ 6.00 per pound. During the summer, when the lobster demand is much higher, Maine's lobster fishermen can generally sell their lobster catches for only around $ 3.00 per pound. In recent July, the captain of a lobster fishing boat said: "By Libra, it is less expensive than hot dogs at this time." It may seem strange that the market price is higher when demand is low that when demand is high. Solve this paradox, with the help of an supply and demand chart. Remember first make a graph identifying where the balance point is and a second graph identifying what happened in the market.
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