What are the equilibrium price and quantity of lobsters

Reference no: EM131112762

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

Price of lobster (per pound)	Quantity of lobster supplied (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. Draw the demand curve and the supply curve for Maine lobsters. What are the equilibrium price and quantity of lobsters?

Now suppose that Maine lobsters can be sold in France. The French demand schedule for Maine lobsters is as follows:

Price of lobster	Quantity of lobster demanded
(per pound)	(pounds)
$25	100
20	300
15	500
10	700
5	900

b. What is the demand schedule for Maine lobsters now that French consumers can also buy them? Draw a supply and demand diagram that illustrates the new equilibrium price and quantity of lobsters. What will happen to the price at which fishermen can sell lobster? What will happen to the price paid by U.S. consumers? What will happen to the quantity consumed by U.S. consumers?

Reference no: EM131112762

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