Assume That There Is a Shortage of Lobster and That

question 75

Essay

Assume that there is a shortage of lobster and that for whatever reason prices have not risen to choke off the excess demand. Instead, the government has exhorted people to voluntary refrain from lobster consumption to "maintain a balance between supply and demand." Assume that the temporary public service announcements are "effective" and the public reduces its consumption of lobster. Explain using supply and demand analysis what should happen to the equilibrium quantity of lobster and its equilibrium price. Why would this plan not have much of an impact on the lobster market in the long run?

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Definitions:

Authority

The power or right to give orders, make decisions, and enforce obedience.

Anger And Hostility

Intense feelings of displeasure or aggression towards something or someone, often displayed through antagonistic or confrontational behavior.

Alternatives

Options or choices available in any decision-making situation.

Reinforcement

The process of providing stimuli following responses that increase the frequency of the responses.