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.

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Definitions:

Increases

A term indicating a rise or growth in quantity, size, or intensity of a particular parameter or variable.

Decreases

A term referring to the reduction or decline in the value or quantity of something.

Form of the Graph

Describes the shape or structure of a graph or chart, which can provide insights into the characteristics of the data or the relationship between variables.

Substance of the Data

A term that refers to the essential information and insights that can be derived from analyzing a dataset, focusing on its meaningful components.