The following questions practice these skills:
1 answer:
Answer:
a. If all 307 registered fishermen were to be employed by hotels (in addition to the 3,409 people already working in hotels), how many hotel stays could Bermuda produce?
since the opportunity cost is constant, then if all 307 fishermen decided to become hotel workers, then the total number of hotel stays would be (286 tons of fish x 2,000 stays per ton) + 538,000 stays = 1,110,000 stays
b. If all 3,409 hotel employees were to become fishermen (in addition to the 307 fishermen already working in the fishing industry), how many metric tons of fish could Bermuda produce?
total number of fish caught = (538,000 stays / 2,000 tons per stay) + 286 tons of fish = 555 tons of fish caught
c. attached graph
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Answer:
The answer is e.
Explanation:
First you draw a supply and demand graph. When you move to the left on the graph, you decrease and when you move to the right, you increase. Being that both supply and demand will decrease, you will end up in the left triangle of the original graph. In that area, you can't really decide the price because it's not clear if it increases or decreases. It is clear that the quantity decreases. So (e) is the answer.
