Question

Suppose that two things happen simultaneously in the market for fish. First, a new technology allows fishing boats to catch more fish while using the same number of crew members as before. Second, a new study shows that eating fish at least three times a week helps prevent heart attacks.
1. As a result, the equilibrium price for fish will while the equilibrium quantity of fish will:________
a. increase
b. decrease
c. have an ambiguous change

2. While the equilibrium quantity of fish will: ________
a. increase
b. decrease
c. have an ambiguous change

Answer 1

Number 1 = decrease
number 2= have an ambiguous change