DC Octopi X Course X events X LECTUF X questic x DP Drive| X GR Results X /1313540/quizzes/1452605/take Q1: (25 points total) Coastal North Carolina is well known for its shrimp, the most economically important fishery for the state. The annual harvest of shrimp from the North Carolina (N.C.) coastline sometimes exceeds 13 million pounds. The N.C. state government is concerned that the annual harvest exceeds sustainable rates, these harvest levels threaten to destroy the shrimp industry in the long term. Note that the shrimp fisheries are highly competitive. The N.C. state government has asked for your assistance in identifying the ideal level of shrimp catch off of their coastline. Demand for shrimp is P = 0.4 - 0.006 @Demand (where P is dollars per pound and QDemand is millions of pounds) The industry supply curve for catching the shrimp is P = 0.06 Q supply - 0.36 The supply curve when the social cost is included is P = 0.65 Q social - 5.65 (This social cost includes the cost of restocking the shrimp, research to restore shrimp habitat and other cleanup associated with the shrimp as well as the cost of catching the shrimp. D Question 2 11 pts Q1 a) (11 points) If the N.C. government does not regulate the catch (i.e., they do not set a limit on the number of pounds of shrimp caught), how many pounds of shrimp will be caught? What will be the price per pound of shrimp? Question 3 O DA ES 14 pts