In the summer of 2000, weather conditions were excellent for commercial salmon fishing off the California...

   

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In the summer of 2000, weather conditions were excellent for commercial salmon fishing off the California coast. .Heavy rains meant higher than normal levels of water in the rivers, which helps the salmon to breed. Slightly cooler ocean temperatures stimulated the growth of plankton, the microscopic organisms at the bottom of the ocean food chain, providing everything in the ocean with a hearty food supply. The ocean stayed calm during fishing season, so commercial fishing operations did not lose many days to bad weather. The Supply and Demand Curves and Schedules are as follows: Price per Pound Price ($ per pound) $2.00 $2.25 $2.50 $2.75 $3.00 $3.25 $3.50 80 120 160 200 230 $4.00 250 $3.50 270 $3.00 $2.50 $2.00 $1.50 $1.00 $0.50 $0.00 600 Quantity (thousands of fish) Figure 3.16 Good Weather for Salmon Fishing: The Four-Step Process Unusually good weather leads changes in the price and quantity of salmon. Quantity Supplied in 1999 0 200 E,(P=3.25, Q=250) S₁ 400 E,(P-2.50, Q-550) •D₂ 400 480 550 600 640 670 700 800 1,000 Quantity Supplied in 2000 FILL IN THE BLANKS How did these climate conditions affect the quantity and price of salmon? Compare the new equilibrium price and quantity to the original equilibrium. From an original price of EO to the new equilibrium E1, the equilibrium price falls from (these should be dollars) but the to 840 680 550 450 350 250 200 Quantit Demand equilibrium quantity increases from to (these answers should be quantity) salmon. Notice that the equilibrium quantity demanded increased, even though the demand curve did not move. Did the economic event affect supply or demand? Good weather is an example of a natural condition that affects (answer Supply or Demand) Was the effect on supply an increase or a decrease? (answer increase or decrease) The supply curve shifts to the right, moving from the original supply curve So to the new supply curve S1, which is shown in both the table and the figure. In short, good weather conditions increased supply of the California commercial salmon. The result was a higher equilibrium quantity of salmon bought and sold in the market at a lower price. In the summer of 2000, weather conditions were excellent for commercial salmon fishing off the California coast. .Heavy rains meant higher than normal levels of water in the rivers, which helps the salmon to breed. Slightly cooler ocean temperatures stimulated the growth of plankton, the microscopic organisms at the bottom of the ocean food chain, providing everything in the ocean with a hearty food supply. The ocean stayed calm during fishing season, so commercial fishing operations did not lose many days to bad weather. The Supply and Demand Curves and Schedules are as follows: Price per Pound Price ($ per pound) $2.00 $2.25 $2.50 $2.75 $3.00 $3.25 $3.50 80 120 160 200 230 $4.00 250 $3.50 270 $3.00 $2.50 $2.00 $1.50 $1.00 $0.50 $0.00 600 Quantity (thousands of fish) Figure 3.16 Good Weather for Salmon Fishing: The Four-Step Process Unusually good weather leads changes in the price and quantity of salmon. Quantity Supplied in 1999 0 200 E,(P=3.25, Q=250) S₁ 400 E,(P-2.50, Q-550) •D₂ 400 480 550 600 640 670 700 800 1,000 Quantity Supplied in 2000 FILL IN THE BLANKS How did these climate conditions affect the quantity and price of salmon? Compare the new equilibrium price and quantity to the original equilibrium. From an original price of EO to the new equilibrium E1, the equilibrium price falls from (these should be dollars) but the to 840 680 550 450 350 250 200 Quantit Demand equilibrium quantity increases from to (these answers should be quantity) salmon. Notice that the equilibrium quantity demanded increased, even though the demand curve did not move. Did the economic event affect supply or demand? Good weather is an example of a natural condition that affects (answer Supply or Demand) Was the effect on supply an increase or a decrease? (answer increase or decrease) The supply curve shifts to the right, moving from the original supply curve So to the new supply curve S1, which is shown in both the table and the figure. In short, good weather conditions increased supply of the California commercial salmon. The result was a higher equilibrium quantity of salmon bought and sold in the market at a lower price.

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