Question

macroeconmics please help me out .

In the summer of 2000, weather conditions were excellent for commercial salmon fishing off the California coast. Heavy rains meant higher than normal levels of water in the rivers, which helps the salmon to breed. Slightly cooler Ocean temperatures stimulated the growth of plankton, the microscopic organisms at the bottom of the ocean food chain, providing everything in the ocean with a hearty food Supply. The ocean stayed calm during fishing season. so commercial fishing operations did not lose many days to bad weather. The supply and Demand Curves and Schedules are as follows: FILL IN THE BLANKS How did these climate conditions affect the quantity and price of salmon? Compare the new equilibrium price and quantity to the original equilibrium. From an original price of E0 to the new equilibrium E1, the equilibrium price falls from (these should be dollars) but the equilibrium quantity increases from (these answers should be quantity) salmon. Notice that the equilibrium quantity demanded increased, even though the demand curve did not move. Did the economic event affect supply or demand? Good weather is an example of a natural condition that affects (answer Supply or Demand) Was the effect on supply an increase or a decrease? (answer increase or decrease) The supply curve shifts to the right, moving from the original supply curve So to the new supply curve S1, which is shown in both the table and the figure. In short, good weather conditions increased supply of the California commercial salmon. The result was a higher equilibrium quantity of salmon bought and sold in the market at a lower price

Answer 1

According to information given in the question , in 2000 there was a favourable weather to breed more salmon than usual and favourable weather during the time of fishing, thus supply of salmon in 2000 was more that leads to have a lower equilibrium prime along with increasing equilibrium quantity sold.

From E0 to E1 equilibrium price falls from $3.25 to$ 2.50 and equilibrium quantity increase from 250 to 550 thousand

Due to good weather for breeding this effects the supply of the fish and supply increases in the market