Fisherman Hake and equilibrium

• Economie
• Middelbare school
• vwo
• Leerjaar 3

Content

Exercise 10 Section 2

Market mechanism

Equilibrium

Read Source 4 on page 48

10 A
Example of fixed costs of fisherman Tom Hake

10 B
Give an example of variable costs of Tom Hake

10 C Calculate the total profit of Tom Hake before the fishing quota

Answers

A. Interest, permit, insurance premium, wages

B. Diesel, bait

C.

Turnover 100,000 X € 5 =                                                 € 500,000

Variable costs 100,000 X € 1.50 = € 150,000

Fixed costs                                             € 300,000

Total costs                                                                              € 450,000 -

Total profit                                                                              €   50,000

10 D
Does the fishing quota cause the supply curve to change or shift?

1. Change (movement along the curve)
2. Shift

10 E Calculate the total profit of Tom Hake after the fishing quota

Answer

Turnover: 40,000 X € 8 =                                                          € 320,000

Variable costs 40,000 X € 1.25 =   €    50,000

Fixed costs                                             € 250,000 +

Total costs                                                                                     € 300,000 -

Total profit                                                                                     €   20,000 

New fish species are supplied. Some consumers switch to these new species. What happens to the price of cod

Answer

The demand curve for cod shifts to the left. The price of cod decreases

Read the intro on page 49
Which curve immediately shifts as a result of the police's action

1. The demand curve shifts to the left
2. The demand curve shifts to the right
3. The supply curve shifts to the left
4. The supply curve shifts to the right