Recently, it has been discovered that lobsters grown on lobster farms can feed on algae, which is a cheaper lobster food. As a result of this discovery, _____.

Question

Quizplus · Accepted Answer

The discovery of cheaper lobster food for lobster farms will decrease the cost of production for lobster farmers. Therefore, it will increase the profitability of lobster farming and encourage more farmers to enter the market. As a result, the supply curve of lobsters will shift to the right, increasing the quantity of lobsters supplied.

Recently, It Has Been Discovered That Lobsters Grown on Lobster