The major BP oil spill in the Gulf of Mexico substantially reduced the harvest of shrimp and
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The major BP oil spill in the Gulf of Mexico substantially reduced the harvest of shrimp and other seafood in the Gulf, but had limited impact on the prices that U. S. consumers paid in 2010 (Emmeline Zhao, “Impact on Seafood Prices Is Limited,” Wall Street Journal, June 20, 2010). The reason was that the United States imports about 83% of its seafood and only 2% of domestic supplies come from the Gulf. Use a supply-and-demand diagram to illustrate what happened.
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Suppose supply is initially S 1 but it decreases by a small amount ...View the full answer
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