micro economics

c. The table below shows a daily data on the market demand for lobsters and individual supply of lobsters by three sellers in Kuala Selangor. Assume that seller A, B and C are the only suppliers of lobsters in the market. Price/kg Quantity demanded Quantity Supplied (kg) (RM) (kg) Seller A Seller B Seller C 20 180 8 10 12 40 160 11 13 16 60 130 20 24 26 80 90 24 30 36 100 50 32 44 54 120 20 52 58 60 (i) Plot the market demand and market supply curves for lobsters in a single diagram and identify the market equilibrium price and quantity in the diagram. (3 marks) (ii) Due to a technological improvement in fishing equipment, the total daily catch of lobsters by the three sellers increased by 60kg at every price level. Plot this new market supply curve in the same diagram you have drawn in part (i) above. Identify the new market equilibrium price and quantity for lobsters. (2 marks) (iii) Using midpoint formula, calculate the price elasticity of demand for lobsters if the price increases from RM80 to RM100. Explain the meaning of the coefficient and determine what type of product lobster is. (3 marks) (iv) Suppose that the price of meat in the market increases from RM30 to RM40, and as a consequent of that, demand for lobsters increased from 70kg to 100kg. Using this information, calculate the cross-elasticity of demand for lobsters in relation to the 10 change in the price of meat. Based on your answer, what can you conclude on the relationship between meat and lobsters? Explain