ECON 100 Take Home Assignment No.1

St. Charles Community College
ECON 100   Survey Economics
Spring Semester 2012
Take Home Assignment No. 1

Scaleville is a small town on the Atlantic coast where fishing is the major industry. Assume that seafood is a normal good.  What happens to the amount of seafood demanded or supplied in each of the following cases?  Draw a separate demand and supply graph for each part of this question, label the axes, and show how the change will shift the demand or supply curve.  Explain any curves in each case.  Show initial and final equilibrium price (P1 and P2) and initial and final equilibrium quantity (Q1 and Q2) for fish.

  1. A subsidy that reduces production costs for seafood processors. 
  2. A reduced supply of beef (consumers view beef and seafood as substitutes).
  3. A rise in the wage in the fishing industry.
  4. A rise in income of consumers.
  5. An improvement in the productivity of catching fish.
  6. A bad potato crop (Seafood and french fries or potato salad are considered to be complementary items).