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Unformatted text preview: exceeds the cost to sellers. Increasing the quantity in this region raises total surplus until equilibrium quantity is reached. At quantities greater than the equilibrium quantity, the cost to sellers exceeds the value to buyers and total surplus falls. 3. ANSWER: Nobody owns the salmon, while private individuals own goldfish. Profit motivations lead to different allocations of the resources. Salmon fishermen have an individual incentive to catch as many salmon as possible before somebody else does. Pet shop owners have a profit incentive to breed goldfish to sell to consumers. 2...
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This note was uploaded on 05/11/2011 for the course ECON 201 taught by Professor Staff during the Spring '08 term at N.C. State.
- Spring '08