To protect the cod fishery off the northeast coast of the U.S., the federal government may limit the amount of fish that each boat can catch in the fishery. The result of this public policy is to:
A) shift the cod demand curve to the left.
B) shift the cod demand curve to the right.
C) shift the cod supply curve to the right.
D) shift the cod supply curve to the left.

Question

Quizplus · Accepted Answer

Limiting the amount of fish each boat can catch in the fishery will decrease the supply of cod, shifting the supply curve to the left. This is because there will be fewer fish available for sale in the market, causing a decrease in the quantity supplied at every given price. This will likely result in an increase in the price of cod as well.

To Protect the Cod Fishery Off the Northeast Coast of the U.S