Question

if there is a quota of 7 million lbs and swordfish fishing licenses are traded in a market, how much will the price of a fishing license be per lb?

Answer 1

The price of a fishing license per lb can be calculated by dividing the total quota by the number of fishing licenses available in the market.

Step-by-step explanation:

To find out how much the price of a fishing license will be per lb, we need to divide the total quota of 7 million lbs by the number of fishing licenses available in the market.

Let's assume that there are 10,000 fishing licenses available. In that case, the price per lb would be calculated as follows:

Price per lb = Total quota / Number of fishing licenses

Price per lb = 7,000,000 lbs / 10,000 licenses

Price per lb = $700

Answer 2

In a market where swordfish fishing licenses are traded, the price of a fishing license per pound depends on the quota. If the quota is 7 million lbs and the original price per pound is $3.25, the price of a fishing license would be $0.116 per pound.

Step-by-step explanation:

In a market where swordfish fishing licenses are traded, the price of a fishing license per pound will depend on the quota. If the quota is 7 million lbs, then we need to divide the total price of all fishing licenses by the quota to find the price per pound.

Let's assume the price per pound is $3.25 and the original equilibrium quantity is 250,000 fish. The total price of fishing licenses would be 250,000 fish * $3.25 = $812,500. If the quota is 7 million lbs, we can divide the total price by the quota to get the price per pound: $812,500 / 7,000,000 lbs = $0.116 per pound.

Therefore, the price of a fishing license per pound would be $0.116.