The demand for lobster is higher at Christmas than in February.If the equilibrium price of lobster is lower at Christmas than in February, then
A)the supply of lobster is lower in February than at Christmas.
B)consumers' tastes for lobster are greater in February than at Christmas.
C)there is a surplus of lobster at Christmas and a shortage of lobster in February.
D)there are more substitutes for lobster at Christmas than there are in February.

Question

Quizplus · Accepted Answer

Since the demand for lobster is higher at Christmas than in February, we can infer that the demand curve for lobster shifts to the right during Christmas time. If the equilibrium price of lobster is lower at Christmas than in February, it means that the supply curve for lobster must have shifted to the right even more than the demand curve during Christmas time. Thus, there is a greater supply of lobster during Christmas than in February, which implies that the supply of lobster is lower in February than at Christmas.

The Demand for Lobster Is Higher at Christmas Than in February.If