There Have Been Severe Problems in the Atlantic Fishing Industry

question 102

Multiple Choice

There have been severe problems in the Atlantic fishing industry, with large falls in the fish stocks. As a result,

• A)the price of fish will fall.
• B)the quantity of fish sold will increase as fishermen will catch more to make up for the shortage.
• C)the equilibrium price and the equilibrium quantity will fall or rise depending on how large the fall in fish stocks.
• D)both the equilibrium price and the equilibrium quantity will rise, as consumers will desire even more fish, because they are scarce.
• E)the fall in the fish stocks will lead to a shortage, a rise in the equilibrium price and a decrease in the equilibrium quantity.

---

Definitions:

Operating Expenses

Costs incurred in the normal operations of a business, such as salaries, utilities, and rent, exclusive of cost of goods sold.

Revenue Recognition

Revenue Recognition is the accounting principle that dictates the specific conditions under which income becomes recognized as revenue.

Goods Delivered

Refers to products or merchandise that have been transported and received by the buyer.