Codfish market Essay Example | Topics and Well Written Essays - 1250 words

Codfish market - Essay Example There has been a decline in the production of codfish from the staggering 810,000 in 1968 to the 750,000 of 2008. The pricing per block of codfish has increased over that period because of the decreased supply of cod fish in the market. 4. Based on the (limited) information available in the posted sources, and your general economic knowledge, what factors have probably shifted the demand (curve) for cod, up or down, between 1968 and 2008? The demand of cod has been affected by the Canadian government policy on its production. The 1992 ban that closed the Northeast fishing beds affected the availability of cod in the fish market ultimately becoming inexistent until two decades later. 5. Based on the data in Figure 3 in the 1973 article, identify years in which the demand for cod must have shifted (compared to the year before) and which way it must have shifted. Looking at the entire twelve-year period, rather than year-by-year, is it clear what happened to demand between 1960 and 1971? The years where demand shifted include 1960-1962 the demanded of cod shifted upwards. From 1963-1965 the demand shifted upwards while 1965-1967 the demand shifted downwards. From 1969-1971 the demand for cod shifted upwards. Newfoundland, in 1968, produced 810, 000 metric tons of Atlantic cod. This figure represents the world’s total of cod at the time. The area produced 100% of all the Atlantic cod in the world. In 1992, Newfoundland produced almost zero metric tons of Atlantic cod. 7. One normally expects a competitive market to generate efficient levels of production. Do you think Canadian cod production was efficient from 1948-68? If a single firm had owned exclusive rights to the fishing grounds, then would this have likely led to the same or different levels of production? Would that solution have been more or less efficient? Which market failure(s) apply to this