An Increase in the Demand for Lobster Due to Changes

question 150

Multiple Choice

An increase in the demand for lobster due to changes in consumer tastes, accompanied by a decrease in the supply of lobster as a result bad weather reducing the number of fishermen trapping lobster, will result in

• A)a decrease in the equilibrium quantity of lobster and no change in the equilibrium price.
• B)an increase in the equilibrium price of lobster and no change in the equilibrium quantity.
• C)an increase in the equilibrium price of lobster; the equilibrium quantity may increase or decrease.
• D)a decrease in the equilibrium quantity of lobster; the equilibrium price may increase or decrease.

---

Definitions:

Religious Injunction

A command, directive, or order that is rooted in religious belief or law.

Instrumental Values

Values that are seen as a means to an end, guiding how we achieve our goals, such as ambition, efficiency, and courage.

Rationality Strategy

The approach of making decisions based on logical reasoning and systematic analysis to achieve the most optimal outcome.

Appeal to Higher Loyalties

A justification for behavior that is based on the claim that the action was in service of a higher principle or greater good, sometimes used to rationalize unethical acts.