Question

If the government sets a quota of 300 pounds of fish caught per day, then fish will sell for ________ more per pound than the cost of catching the fish.

Answer 1

If the government sets a quota of 300 pounds of fish caught per day, the fish will sell for $3.25 more per pound than the cost of catching the fish.

Step-by-step explanation:

In this case, if the government sets a quota of 300 pounds of fish caught per day, the fish will sell for $3.25 more per pound than the cost of catching the fish.

This is because when the government sets a quota, it limits the supply of fish available in the market. With a reduced supply, the price of fish will increase.

For example, if the original equilibrium quantity is 250,000 fish and the price per pound is $3.25, the market price will increase by $3.25 per pound due to the quota.

Answer 2

$20 per pound

Step-by-step explanation:

According to the attached diagram as we can see that the government sets a quota of 300 pounds for caughting a fish per day due to which the selling price is rised from $30 to $50

Also more than 300 pounds of fish would not be caught per day

Therefore the difference of $20 would be considered

hence, the fish would sell for $20 per pound more