Question

Marcus is the chief data analyst of the U.S. Fish and Wildlife Service for the West Coast. There is a growing concern about the overfishing in the Pacific fisheries, and Marcus needs to estimate the demand curve for salmon as part of the agency's mitigation efforts. From data already collected he sees that when the price of a freshly caught salmon is $400, the public will demand a quantity of 1 million fish. If the price is $215 then the public will demand 4 million fish. Finally, if the price was $50 consumers will demand a quantity of 8 million fish. Which curve below is the correct demand curve for Pacific salmon given these three data points? Demand for Salmon 450 350 300 8S250 $200 $150 $100 550 s0 2 7 9 Quantity (millions) the blue curve the silver curve the orange curve

Answer 1

Given that the price of a freshly caught salmon is $400 and the quantity demanded is 1 million fish. If the price is $215 the quantity demanded is 4 million fish and when the price is $50 the quantity demanded is 8 million fish. From the given graph it can be observed that the orange curve is the correct demand curve for Pacific salmon. Therefore, the correct option is (c).