The French demand schedule for Maine lobsters is as follows: Price of lobster (p

Question

The French demand schedule for Maine lobsters is as follows:

Price of lobster (per lb) | Quantity of lobster supplied (per lb)
$25 | 100
$20 | 300
$15 | 500
$10 | 700
$5 | 900

U.S. demand schedule:

$25 | 200
$20 | 400
$15 | 600
$10 | 800
$5 | 1,000

What is the demand schedule for Maine lobsters now that French consumers can also buy them?

Price of lobster | Quantity of lobsters (U.S. + French)
$25
20
15
10
5

Draw a supply and demand diagram that illustrates the new equilibrium price and quantity of lobsters.


What will happen to the price at which fishermen can sell lobster? (6pts)

What will happen to the price paid by U.S. consumers? (6pts)

What will happen to the quantity consumed by U.S. consumers?

I thank you very much in advance for your help on this.

Explanation / Answer

Here is my school's website, we did this problem too, once you get to the website, just scroll down to pg 5 & 6. There it is: http://faculty.pepperdine.edu/jburke2/ba210/PowerP1/Set3Answers.pdf

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