DON'T NEED TO SHOW WORK.

19.Suppose a fall in consumer income drives down the demand for lobster while a record harvest increases supply. How would these changes affect the equilibrium price and quantity of lobsters?

a.

Both equilibrium price and equilibrium quantity would decrease.

b.

The equilibrium price would fall, but the effect on the equilibrium quantity cannot be predicted.

c.

The equilibrium price would fall and the equilibrium quantity would increase.

d.

The equilibrium quantity would increase, but the effect on price cannot be predicted.

20.When the slope of Total Cost is greater than the slope of Total Benefit at the current activity level, the decision maker can increase Net Benefit by decreasing the activity because

a.total benefit will rise by more than total cost will rise.

b.marginal cost is rising faster than marginal benefit is falling.

c.net benefit is upward sloping at this point.

d.total cost will fall by more than total benefit will fall.