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A single Bluefin tuna has been sold in a Japanese fish market for a new record price.The sale came at the same time as warnings that tuna stocks (which are a finiteresource) are being overfished.
(a) Describe in what way the following factors would affect the price of a productlike tuna. Give a reason for each of your answers.
(i) A successful advertising campaign.
(ii) A rise in the price of a substitute good.
(b) Describe why demand usually falls as price rises.
(c) Using a demand and supply diagram, describe the impact that overfishing mighthave on the equilibrium price and quantity of Bluefin tuna in the future.
Important information regarding calculating elasticity for each of the given variables
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