The Demand for Lobster Is Higher in the Summer Than

question 101

Multiple Choice

The demand for lobster is higher in the summer than in the spring.If the price of lobster is lower in summer than in spring then

• A) the supply of lobster is lower in spring than in summer.
• B) consumers' tastes for lobster are greater in spring than in summer.
• C) there is a surplus of lobster in summer and a shortage of lobster in spring.
• D) there are more substitutes for lobster in summer than there are in spring.

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Definitions:

Economic Losses

Situations where total costs exceed total revenues, indicating that resources may be better utilized elsewhere.

Average Variable Cost

The total variable costs (costs that change with the level of output) of production divided by the quantity of output produced.

Short Run

A time period in which at least one input is fixed and cannot be changed by the firm, affecting its production decisions.

Purely Competitive Market

Another term for a perfectly competitive market, emphasizing its features like a large number of small firms and identical products.