Question: 1.11. Reconsider the common resource problem given in Example 18.7. Suppose that crawfish popularity continues to increase, and that the demand curve shifts from C
1.11. Reconsider the common resource problem given in Example 18.7. Suppose that crawfish popularity continues to increase, and that the demand curve shifts from C = 0.401 − 0.0064F to C = 0.50 − 0.0064F. How does this shift in demand affect the actual crawfish catch, the efficient catch, and the social cost of common access? (Hint: Use the marginal social cost and private cost curves given in the example.)
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