Fishing for king crabs for a living is risky business. Their migration habits along the Bering Strait are just not understood. The king crabs seem to disappear one year but return mysteriously a few years later, wreaking havoc on the income of crabbers. When crabs disappear, consumers buy lobster instead. What best describes this situation in the king crab market?

Question

Business

Malachi Shepherd

20 October, 19:37

Fishing for king crabs for a living is risky business. Their migration habits along the Bering Strait are just not understood. The king crabs seem to disappear one year but return mysteriously a few years later, wreaking havoc on the income of crabbers. When crabs disappear, consumers buy lobster instead. What best describes this situation in the king crab market?

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Answers (1)

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Mathew Haney · Answer 1

The supply curve shifts to the left when crabs disappear (their price rises) and shift to the right when they reappear (their price declines).

Explanation:

When the demand of any product remains constant the shifting of the supply curve will be positive and the shift will be towards the right. This will cause the prices of that product to get reduced and there will be an increase in the quantity of the product.

A change which is negative in supply curve happens causing the supply curve to move towards the left thereby causing the prices to raise and the quantity will be reduced. In the example give, the situation that bets describes the market of King crab market will be the supply curve shifts to the left when crabs disappear (their price rises) and shift to the right when they reappear (their price declines).