In the Summer 2012 the Lobster Catch in Maine Was

question 467

Multiple Choice

In the summer 2012 the lobster catch in Maine was especially large, but instead of celebrating the fisherman were suffering from a lower total revenue. (Source: New York Times, July 28, 2012) Despite the larger quantity of lobster caught, the total revenue of the fisherman decreased. This fact means that the demand for lobster is

• A) unit elastic.
• B) elastic.
• C) inelastic.
• D) perfectly elastic.

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Definitions:

Relatively Elastic

Describes a situation where a small change in price leads to a larger change in the quantity demanded or supplied.

Decrease in Price

A reduction in the cost of a good or service, which can influence consumer demand and potentially market dynamics.

Price Elasticity of Demand

A measure of how much the quantity demanded of a good responds to a change in its price, indicating its sensitivity.

Water Consumption

The amount of water used by individuals, businesses, or agricultural processes, often measured to assess sustainability or efficiency.