Saturday 25 October 2008

additional exercise 3(fish)


a.What would you expect to be the nature of the price elasticity of supply in the short run(that is, on any given day)?
Given the nature of the supplier's objective of profit maximisation.
b.Suppose that,on one particular day,fishing conditions are so good that all fishermen return with record catches.How would this affect the price of fish?
The price of fish will fall because the supplier are too much.
c.How might the situation in(B) affect the supply of fish on the following day?
I think fall in price in b will make the fishing man don't want to go fish more,so the supply of fish will fall.
d.How would you expect the supply of fish to be affected by the invention of the new style of canoe that makes it easier to catch fish?
The supply of fish will be risen because they can catch more fish.
e.How would the market be affected if this new style canoe also enable fish to be traded with a neighbouring island?
I think the fishing man who have new style canoe will catch more fish than another have old ones,so the price of the new ones will be cheaper than old one.They will sell more fish than.The old ones will make market failure...

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