The waters off the North Atlantic coast were once teeming with fish But due to over fishing by the commercial fishing industry, the stocks of fish became seriously depleted In 1991, the National Marine Fishery Service of the U S government implemented a quota to allow fish stocks to recover The quo...

a The quantity sold is 7 million pounds at a price of 18 per pound On ea ...

The waters off the North Atlantic coast were once teeming with fish. But due to over fishing

Question:

The waters off the North Atlantic coast were once teeming with fish. But due to over fishing by the commercial fishing industry, the of fish became seriously depleted. In 1991, the National Marine Fishery Service of the U.S. government implemented a quota to allow fish to recover. The quota limited the amount of swordfish caught per year by all U.S.-licensed fishing boats to 7 million pounds. As soon as the U.S. fishing fleet had met the quota limit, the swordfish catch was closed down for the rest of the year. The accompanying table gives the hypothetical demand and supply schedules for swordfish caught in the United States per year.

a. Use a diagram to show the effect of the quota on the market for swordfish in 1991.
In your diagram, illustrate the deadweight loss from inefficiently low quantity.
b. How do you think fishermen will change how they fish in response to this policy?

Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing...