Mr.Paque is a bear hunter for timber companies that want to diminish damage to trees done by bears in the spring.Due to a reduction in the bear population between 1995 and 2005, Mr.Paque finds fewer bears each year and additional hours spent hunting produce fewer additional bears.With the information given and noting that the bounty on bears has risen, one can conclude that (i) Mr.Paque's income per hunting hours will fall; (ii) the derived demand for Mr.Paque's services will shift left.

Question

Quizplus · Accepted Answer

The derived demand for Mr. Paque's services will shift left due to the reduced bear population, meaning fewer bears to hunt. However, since the bounty on bears has risen, his income per hunting hour may not necessarily fall.

MrPaque Is a Bear Hunter for Timber Companies That Want