help with question C please. I have the graphs from parts a and b.S overbar is the the "carrying capactiy"/ equilibrium S underbar is the minimum viable population E is the optimum effort **Price Floor Explanation and Graph Analysis****Graph a: Price Floor**1. **Axes**: - Vertical axis (P): Represents the price. - Horizontal axis (Q): Represents the quantity.2. **Lines**: - The upward-sloping line (S): Represents supply. - The downward-sloping line (D): Represents demand.3. **Price Floor**: - A horizontal line above the equilibrium point indicates a price floor, which is the minimum allowable price set by regulation.4. **Equilibrium Points**: - The intersection of supply and demand at a lower point is the equilibrium without a price floor (Eₒ). - The price floor creates a new intersection at a higher price level (E₁).5. **Effects**: - The price floor causes an excess supply, as quantity supplied is greater than quantity demanded at the set floor price.**Graph b: Shift in Demand with Price Floor**1. **Demand Shift**: - The demand curve shifts to the left from D to D2, indicating a decrease in demand.2. **New Equilibrium Points**: - Original equilibrium (Eₒ) shifts to a new equilibrium (E₁) due to the demand curve shift. - With the price floor, a new excess (E₂) is created as the floor price is still above the new equilibrium created by the demand shift.3. **Effects**: - The decrease in demand exacerbates the surplus created by the price floor, leading to a further increase in excess supply.These graphs illustrate the impact of a price floor in a market, leading to excess supply and potential inefficiencies, especially when demand shifts occur. ### Sustainable Fishery Management and Economic Approaches#### Key Approaches to Managing Fishery Operations:a. **Licensing Fee Strategy** - Fishers are charged a large licensing fee to be able to operate a fishing business in the waters.b. **Flat Rate Taxation** - Fishers are taxed a flat rate based on the number of boats in the fleet.#### Evaluating Impact on Fish Populations:c. **Sustainable Yield Curve Analysis** - Determine the most effective method described and examine its impact on fish population. - Use a sustainable yield curve to illustrate changes in fish populations. - Consider incorporating the following elements: - $ \bar{S}, S $ (Various states or levels of sustainable fish populations) - $ E^E $ (Equilibrium effort level) - Illustrative elements such as new catch effort - Arrows showing the transition path of the population along the yield curve, indicating shifts or changes over time.

The maximum economic yield is the yield level that corresponds to the degree of harvest or effort…

a. Fishers are charged a large licensing fee to be able to operate a fishing business in the waters. b. Fishers are taxed a flat rate based on the number of boats in the fleet. C. For whichever answer you described as the most effective, show the impact on fish population using a sustainable yield curve over fish population. Be sure to show S,S, EE , new catch effort, and arrows indicating the transition path of the population along the yield curve.

a. Fishers are charged a large licensing fee to be able to operate a fishing business in the waters. b. Fishers are taxed a flat rate based on the number of boats in the fleet. C. For whichever answer you described as the most effective, show the impact on fish population using a sustainable yield curve over fish population. Be sure to show S,S, EE , new catch effort, and arrows indicating the transition path of the population along the yield curve.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

help with question C please. I have the graphs from parts a and b.

S overbar is the the "carrying capactiy"/ equilibrium

S underbar is the minimum viable population

E is the optimum effort

**Price Floor Explanation and Graph Analysis**

**Graph a: Price Floor**

1. **Axes**:
- Vertical axis (P): Represents the price.
- Horizontal axis (Q): Represents the quantity.

2. **Lines**:
- The upward-sloping line (S): Represents supply.
- The downward-sloping line (D): Represents demand.

3. **Price Floor**:
- A horizontal line above the equilibrium point indicates a price floor, which is the minimum allowable price set by regulation.

4. **Equilibrium Points**:
- The intersection of supply and demand at a lower point is the equilibrium without a price floor (Eₒ).
- The price floor creates a new intersection at a higher price level (E₁).

5. **Effects**:
- The price floor causes an excess supply, as quantity supplied is greater than quantity demanded at the set floor price.

**Graph b: Shift in Demand with Price Floor**

1. **Demand Shift**:
- The demand curve shifts to the left from D to D2, indicating a decrease in demand.

2. **New Equilibrium Points**:
- Original equilibrium (Eₒ) shifts to a new equilibrium (E₁) due to the demand curve shift.
- With the price floor, a new excess (E₂) is created as the floor price is still above the new equilibrium created by the demand shift.

3. **Effects**:
- The decrease in demand exacerbates the surplus created by the price floor, leading to a further increase in excess supply.

These graphs illustrate the impact of a price floor in a market, leading to excess supply and potential inefficiencies, especially when demand shifts occur.

### Sustainable Fishery Management and Economic Approaches

#### Key Approaches to Managing Fishery Operations:

a. **Licensing Fee Strategy**
- Fishers are charged a large licensing fee to be able to operate a fishing business in the waters.

b. **Flat Rate Taxation**
- Fishers are taxed a flat rate based on the number of boats in the fleet.

#### Evaluating Impact on Fish Populations:

c. **Sustainable Yield Curve Analysis**
- Determine the most effective method described and examine its impact on fish population.
- Use a sustainable yield curve to illustrate changes in fish populations.
- Consider incorporating the following elements:
- $ \bar{S}, S $ (Various states or levels of sustainable fish populations)
- $ E^E $ (Equilibrium effort level)
- Illustrative elements such as new catch effort
- Arrows showing the transition path of the population along the yield curve, indicating shifts or changes over time.

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