2. Due to overfishing, Norway becomes unable to catch the quantity of fish that it could in previous years. This change causes both a reduction in the potential quantity of fish that can be produced in Norway and an increase in the relative world price for fish, Pf>Pa.

a. Show how the overfishing problem can result in a decline in welfare for Norway.

b. Also show how it is possible that the overfishing problem could result in an increase in welfare for Norway.