Many Washington State residents and politicians are concerned about the declining salmon population, a primary food source

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Many Washington State residents and politicians are concerned about the declining salmon population, a primary food source for local wildlife, including the endangered orca whale. To protect the salmon population from overfishing, politicians are considering two policies. The first is a binding price ceiling in the market for salmon. The second policy is a quota: permits would be sold to those who fish commercially in order to restrict their salmon catch. As events have unfolded, itʼs become clear that politicians tend to favor the quota system while those who catch fish for a living prefer a price ceiling. Why do you think this is the case?

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Macroeconomics

ISBN: 9781319245269

6th Edition

Authors: Paul Krugman, Robin Wells

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