Consider a Market for Fish Whose Market Demand and Market

question 115

Multiple Choice

Consider a market for fish whose market demand and market supply for fish are specified as Qd = 300 − 2.5P and Qs = − 20 + 1.5P, respectively. The government decides to impose a price ceiling of $50 per ton. What would be the resulting market distortion?

• A) Shortage of 120 tons of fish
• B) Shortage of 175 tons of fish
• C) Surplus of 120 tons of fish
• D) Surplus of 175 tons of fish

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Definitions:

Echinoderms

A phylum of marine animals known for their radial symmetry and include species such as starfish, sea urchins, and sea cucumbers.

Hermaphrodite

Animal that has both male and female gonads, either simultaneously or at different times in its life cycle.

Parthenogenetic

Relating to a form of reproduction in which an embryo is created without fertilization by a male, occurring in some plants, invertebrates, and rarely vertebrates.

Sperm

The male gamete or reproductive cell involved in sexual reproduction.