Product-line extension is a form of price discrimination

An increase in government spending will likely have which of the following effects?

A) a rightward shift in the IS curve B) a leftward shift in the IS curve C) an upward shift in the LM curve D) a downward shift in the LM curve

Lionfish is an aquatic invasive species in the southeastern U.S. and the Caribbean. Current removal policies focus on harvesting the lionfish for human consumption. However, a fishing license is required to fish in most southern states. Assume that the supply of fishing licenses is Qs = 50 + 0.05L + 40P, where L=lionfish population and P = price of a fishing license, and the demand for fishing

licenses is Qd = 1400 – 60P. What is the equilibrium price and quantity of fishing licenses when L = 10,000? A) P = $8.5, Q = 890 B) P = $13, Q = 620 C) P = $13.5, Q = 590 D) P = $13.5, Q = 591