Summer 2010 was marked by a runaway British Petroleum (BP) oil well in the Gulf of Mexico. It was not plugged until mid-August, after spewing crude oil into the Gulf for over three months. The Gulf fishing industry was devastated. Oyster, shrimp, and Red Snapper production was virtually halted because consumers feared that harvested sea food would be contaminated. Gulf oysters were not available in fish markets, oyster bars in New Orleans closed, wholesalers also closed and fishing boats stayed at their docks. Massive layoffs hit the industry. Workers found temporary employment with BP cleaning up oil and trying to save coastal wildlife from an oily doom. Strangely, the market price of oysters stayed about the same throughout the ordeal, in spite of a large decrease in supply, although a sharp price increase was anticipated. Explain this situation with a demand and supply diagram. Your written statement summarizing the analysis must be consistent with your graphical analysis. a) GRAPHICAL ANALYSIS b) WRITTEN
Summer 2010 was marked by a runaway British Petroleum (BP) oil well in the Gulf of Mexico. It was not plugged until mid-August, after spewing crude oil into the Gulf for over three months. The Gulf fishing industry was devastated. Oyster, shrimp, and Red Snapper production was virtually halted because consumers feared that harvested sea food would be contaminated. Gulf oysters were not available in fish markets, oyster bars in New Orleans closed, wholesalers also closed and fishing boats stayed at their docks. Massive layoffs hit the industry. Workers found temporary employment with BP cleaning up oil and trying to save coastal wildlife from an oily doom. Strangely, the market
- a) GRAPHICAL ANALYSIS
- b) WRITTEN
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