Chapter 3, Problem 6P

To determine

Demand and supply curve for

(a) Demand and Supply Curve when lobster is sold only in US.

Concept Introduction

Demand:

The demand of a product or service in the market is derived by the willingness to purchase and ability of the consumers to pay for the purchase.

Supply:

The supply of a product or service means making available a specific product or service to the consumers at a specific price.

Equilibrium Price:

The equilibrium price is the market price at which the quantity demanded by the consumers equals the quantity supplied by the producers.

Equilibrium Quantity:

The equilibrium quantity is that quantity where the demand and supply of a product or service is equal.

To determine

Demand and supply curve for

(b) Demand and Supply Curve when lobster is sold to French consumers also.

Concept Introduction

Demand:

The demand of a product or service in the market is derived by the willingness to purchase and ability of the consumers to pay for the purchase.

Supply:

The supply of a product or service means making available a specific product or service to the consumers at a specific price.

Equilibrium Price:

The equilibrium price is the market price at which the quantity demanded by the consumers equals the quantity supplied by the producers.

Equilibrium Quantity:

The equilibrium quantity is that quantity where the demand and supply of a product or service is equal.