The popularity of whitefish, such as cod, continues to increase in the United States. Worried about overfishing, Canadian and U.S. officials reduce the cod fishing season for licensed fishing crews from 45 days to 30 days. How will these two events ultimately affect the market for cod? Economic steps 1. Identify the market 2. Identify the non-price determinant of demand or supply affecting market equilibrium (if there are two events, one affecting demand or and a separate one affecting supply it is necessary identify each non-price determinant and draw two graphs) 3. Explain if the non-price determinant of demand or supply will increase or decrease 4. Identify the ultimate change to market price and market quantity at the new equilibrium Students must refer to the "supply&demand" graphs (a,b,c,d) to explain increases or decreases in supply or demand. For example, if the market scenario causes an increase in supply, students should simply state " similar to a graph C the event will cause an increase in supply". Remember, the most important economic observation is to identify what ultimately happens to price and quantity at the new market equilibrium. P 0 P 0 1 S S DT: PT, QT D2 DI (a) Increase in demand S2 ST: P, QT (c) Increase in supply Q Q P 0 1 P 0 S2 S S (b) Decrease in demand D (d) Decrease in supply D: P, Ql DI D 2 st: PT, Q e Q