Discussion Questions 4: Economics Management

Prepared By:

Ma’ali alawadi
Ehab sha’aban
DQ4.1

Application Question 3

Vietnam’s seafood exports in January and …etc

a. What was the effect of the increase in exports on the market equilibrium price and
quantity of seafood in Vietnam?

The initial Equilibrium in the seafood market occurs on point E1, , increasing export of
seafood will shift the demand curve leftward to D1, and new Equilibrium point is E2
increasing exporting will increase price will and Quantity of seafood will decrease to q2.

b. What was the effect of the increase in exports on the profit of an individual fisherman?
increasing in price will increase of profit for individual fisherman ,

c. How will the number of fishermen in Vietnam change in the long run? How does it affect
the seafood market?
In the long run new firm will enter the market and the supply will increase the Supply curve
will shift rightward

d. With the change in the number of fishermen, how will the profit of an individual
fisherman change?
increasing of number of fishermen because increasing of profits, on the long run the
demand will decrease until the price will fall to the initial price P1.

e. With the change in profit in the long run will individual fishermen exit the market?
Fishermen will exit the market in the long run of their losses.