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:

Short-term Memory

The capacity for holding a small amount of information in an active, readily available state for a short period of time.

Long-term Memory

A type of memory that stores information for a long period, potentially for a lifetime, encompassing experiences, knowledge, and skills.

One-Fifth

Quantitatively, a fraction equivalent to 20 percent or one out of five parts.

Mammals

A class of warm-blooded vertebrate animals that have, in the female, mammary glands which produce milk for feeding their young.