The waters off the North Atlantic coast were once teeming with fish. But due to overfishing by the commercial fishing industry, the stocks of fish became seriously depleted. In 1991, the International Commission for the Conservation of Atlantic Tunas (ICCAT) implemented a quota to allow fish stocks to recover. The quota limited the amount of swordfish caught per year by all Canadian-licensed fishing boats to 2 million kilograms. As soon as the Canadian fishing fleet had met the quota limit, the swordfish catch was closed down for the rest of the year. The accompanying table gives the hypothetical demand and supply schedules for swordfish caught in Canada per year.

a. Use a diagram to show the effect of the quota on the market for swordfish in 1991.

b. How do you think fishers will change how they fish in response to this policy?

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Quantity of swordfish (millions of kilograms per year) Quantity supplied Price of swordfish (per kilogram) Quantity demanded $20 15 13 18 16 11 14 12 10