a new study suggests that eating wild salmon reduces your chances of developing heart disease. At the same time, the government adopts a new regulation that increases the cost of catching wild salmon. Based on these changes we would expect the equilibrium quantity of the wild salmon sold to. increase decrease remain unchanged it is impossible to say
a new study suggests that eating wild salmon reduces your chances of developing heart disease. At the same time, the government adopts a new regulation that increases the cost of catching wild salmon. Based on these changes we would expect the
increase
decrease
remain unchanged
it is impossible to say
As the demand of the wild salmon would increase due to the reduction of heart disease after its consumption, along with that the price of wild salmon has been increased due to the policy regulation of the government to catch it. Following these changes together would shift the demand curve of wild salmon to the right direction along with a increase in equilibrium price. This would increase the quantity demanded to some extent which will increase the equilibrium quantity of wild salmon.
Therefore the best option which fits here is a) which is increase in equilibrium quantity of wild salmon.
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