In the summer 2012 the lobster catch in Maine was especially large, but instead of celebrating the fisherman were suffering from a lower total revenue. (Source: New York Times, July 28, 2012) As the lobster catch increases, there is
A) a movement along the demand curve, resulting in a higher price and a decreased quantity.
B) a movement along the demand curve, resulting in a lower price and an increased quantity.
C) no change in either the price or the quantity.
D) a movement along the demand curve, resulting in a higher price and an increased quantity.

Question

Quizplus · Accepted Answer

As the lobster catch increases, the supply increases, leading to a movement along the demand curve with a lower price and an increased quantity sold.

In the Summer 2012 the Lobster Catch in Maine Was