Demand and Supply Curve for Tuna Fish Essay Example | Topics and Well Written Essays - 1250 words

Demand and Supply Curve for Tuna Fish - leaven ExampleThis is primarily because a movement along the supply edit out occurs when the price of the good diversenesss and sum supplied changes in line with the original supply relationship. If any of the factors affecting supply of vessels or labor mart changed then the supply curve would shift either side (Arnold, 2013).If people discover that tuna fish has dark concentrations of mercury the fish labor market would suffer. Though price has been increase due to healthy mind about tuna fish as a rich source of protein, this discovery would drastically set about the amount contained causing leftward shift in engage curve from D1 to D2. Thereby, the quantity demanded for the fish would lower because of destructive effects of mercury in food which also see price lower from p1 to p2. The supply curve would remain the same and quantity of labor and vessels supplied would move along the curve. If there is no remedy, the entire tuna m arket would collapse unless fishermen go fishing is safe waters where there are no bemire fish. Q 4.1 Price Ceiling in Argentinas Electricity Market With increase in demand for electricity in urban and rural areas with a price ceiling, it would put an upward pressure on price of electricity to increase and utility companies would require funds to expand their capacity to meet increasing demand (Q1) at lower and cheap prices (Po). Since there is an incentive to buy air conditioners to cool the houses, ply blackouts would continue to increase more in urban areas than in rural areas. The difference arises because more urban centres are connected to power and residents countenance more disposable incomes to purchase air conditioners. In its worsened form as inflation bites, utility companies would have to produce lower units of power at regular prices further increasing power blackouts. The supply curve would shift to the left resulting into lower units of power issue (Q2) but beca use of the price ceiling the price remains the same instead of increasing as would have been the show window under free market. Q 4.5 Price of entrees/ dinner during recession and during economic boom If the restaurant perplexity is seeking less-price conscious clientele, it would thence mean that during an economic boom, the target clients would have more disposable income and therefore imparting to spend extra cash on the same quantity to enjoy a easy dinner at the restaurant. Likelihood of the management to increase prices under economic boom would depend on price elasticity of demand among the target customers. If the elasticity of demand is more that unity, then it would mean that a unit change in price would result into more than one unit change in quantity demanded. On the other hand, if elasticity is less that unitary, then a unit change in price would result into less than a unit change in quantity demanded (Landsburg, 2011). Therefore, in this case because the assumpt ion is that target clientele is less price sensitive, then it means that price elasticity of demand is less than unitary. As a result, if the management decides to increase prices during an economic boom, then a unit change (increase) in price would result in less than a unit change (reduction) in quantity demanded (or number of clients). The resultant effect is that total revenue would increase more than before the original posture because change from P0 P1 Q0 Q1. This therefore would let the management to allow customers to eat a leisurely dinner because they will have covered their costs and accrue more revenue. In addition, the ambience that comes with the restaurant having fewer customers would take in more customers who are less price