In the summer 2012 the lobster catch in Maine was especially large, but instead of celebrating the fisherman were suffering from a lower total revenue. (Source: New York Times, July 28, 2012 ) As the lobster catch increases, there is
A) a movement along the demand curve, resulting in a higher price and a decreased quantity.
B) a movement along the demand curve, resulting in a lower price and an increased quantity.
C) no change in either the price or the quantity.
D) a movement along the demand curve, resulting in a higher price and an increased quantity.
B
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Which of the following is a normative statement?
a. The deduction for state taxes cost the federal government $100 billion per year. b. Taxpayers in North Carolina pay state taxes which are above the national average. c. Twenty-two states use a lottery to raise state taxes. d. Congress is considering the president's tax plan to increase taxes which is a fair plan.
In a market economy, the decision regarding allocation of resources is made by
a. automatic forces of supply and demand. b. authorities in Washington, D.C. c. planners in state capitals. d. committees from a variety of economic interest groups. e. All of the above are correct.