The Deepwater Horizon oil spill in the Gulf of Mexico which began from an explosion on April 20, 2010 resulted in a ban on shrimp fishing that measures about 10% of the Gulf. Using the graph below assume that the original supply curve before the spill is represented by So and the new supply curve is represented by S2 explain the process that takes place to reach a new equilibrium.

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The Answer is <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB2936/11eb113c_c5cf_c549_a29b_6ba6bfece067_TB2936_00.jpg" alt="  The supply curve shifts to the left. Before the waters are closed, the shrimp market is in equilibrium at the price of $11.00 and a quantity of 75 million pounds. The decreased supply of shrimp leads to higher prices, and a new equilibrium is reached at $16.00 and 56 million pounds (point B)." class="answers-bank-image d-block" rel="preload" > The supply curve shifts to the left. Before the waters are closed, the shrimp market is in equilibrium at the price of $11.00 and a quantity of 75 million pounds. The decreased supply of shrimp leads to higher prices, and a new equilibrium is reached at $16.00 and 56 million pounds (point B).

The Deepwater Horizon Oil Spill in the Gulf of Mexico