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Consider the market for Sushi. Draw the demand and supply and assume they have the usual shapes. a. Consumers are getting richer. What will happen
Consider the market for Sushi. Draw the demand and supply and assume they have the usual shapes. a. Consumers are getting richer. What will happen to the demand for Sushi? How does this affect the equilibrium price and quantity? Show this on your diagram and explain briefly. b. Experts warn that over-fishing (that is catching too many fish in the present and reducing their ability to reproduce) could result from the developments described in part a. This would reduce the stock of Sushi-grade fish in the future. Show this effect on your diagram? How will it change the equilibrium price and quantity of Sushi? (Note that the developments affecting demand are the same as in part a.) c. If consumers are getting richer will the demand for fast food respond in a similar way to that of sushi ? (Discuss briefly.)
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