Suppose the local lake has a population of 200 trout at the beginning of the fishing season. If the population at the end of the season is below 100, fishing won't be allowed next year to allow the population to recover. Three people live on the lake. Abhi's demand for fish is QA=40-P; Bea's demand is Qg=30-0.2P; Charlie's demand is Qc=50-2P. If fishing is free (P=0), there will be fish remaining at the end of the season, and the lake will be open + for fishing next year. Suppose the local government wants to ensure that there are 100 fish left in the lake at the end of every season. Then the government should impose a fee of $ per fish.

Suppose the local lake has a population of 200 trout at the beginning of the fishing season. If the population at the end of the season is below 100, fishing won't be allowed next year to allow the population to recover. Three people live on the lake. Abhi's demand for fish is QA=40-P; Bea's demand is Qg=30-0.2P; Charlie's demand is Qc=50-2P. If fishing is free (P=0), there will be fish remaining at the end of the season, and the lake will be open + for fishing next year. Suppose the local government wants to ensure that there are 100 fish left in the lake at the end of every season. Then the government should impose a fee of $ per fish.

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter6: Elasticity

Section: Chapter Questions

Problem 10QP

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