The hypothetical country of Crabby Island has imposed a production quota of 4,000 crabs per month. Use the line segment in the graph below to show this production quota then answer the following question. Price ($) 10 9 8 7 (O 5 4 3 2 1 2000 Production quota 4000 6000 Quantity (crabs per month) Supply Demand 8000 10000 1. Use the line segment to show a production quota of 4,000 crabs per month. 2. What is the price of crab after the introduction of the quota? GA Number

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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The hypothetical country of Crabby Island has imposed a production quota of 4,000 crabs per month. Use
the line segment in the graph below to show this production quota then answer the following question.
Price ($)
10
9
8
7
(O
5
4
3
2
1
2000
Production quota
4000
6000
Quantity (crabs per month)
Supply
Demand
8000
10000
1. Use the line segment to show a production
quota of 4,000 crabs per month.
2. What is the price of crab after the
introduction of the quota?
GA
Number
Transcribed Image Text:The hypothetical country of Crabby Island has imposed a production quota of 4,000 crabs per month. Use the line segment in the graph below to show this production quota then answer the following question. Price ($) 10 9 8 7 (O 5 4 3 2 1 2000 Production quota 4000 6000 Quantity (crabs per month) Supply Demand 8000 10000 1. Use the line segment to show a production quota of 4,000 crabs per month. 2. What is the price of crab after the introduction of the quota? GA Number
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