Skip to main content

Table of Contents

  1. Topic pack - Microeconomics - introduction
  2. 1.1 Competitive Markets: Demand and Supply
  3. 1.1 Competitive Markets: Demand and Supply - notes
    1. The nature of markets
    2. Types of markets
    3. Market structure
    4. Spectrum of competition
    5. Demand
    6. The law of demand
    7. Individual and market demand
    8. Non-price determinants of demand
    9. Movements along the demand curve
    10. Shifts in the demand curve
    11. Example - shifts and movements along a demand curve
    12. Exceptions to the normal law of demand
    13. Linear demand functions
    14. Linear demand functions - example
    15. The law of supply
    16. Non-price determinants of supply
    17. Movements along the supply curve
    18. Shifts in the supply curve
    19. Shifts and moves of supply curve
    20. The real supply curve?
    21. Linear supply functions
    22. Linear supply functions - example
    23. Market equilibrium
    24. Market equilibrium - notes
    25. Excess demand and excess supply
    26. Example 1 - the market for DVD players
    27. Example 2 - the market for fish
    28. Applications of demand and supply
    29. Calculating market equilibrium
    30. Calculating equilibrium - example
    31. Scarcity and choice
    32. Choice and opportunity cost
    33. Price signalling
    34. Market efficiency - consumer surplus
    35. Market efficiency - producer surplus
    36. Allocative efficiency
  4. 1.1 Competitive markets - questions
  5. 1.1 Competitive markets - simulations and activities
  6. 1.2 Elasticities
  7. 1.2 Elasticities - notes
  8. Section 1.2 Elasticities - questions
  9. Section 1.2 Elasticities - simulations and activities
  10. 1.3 Government intervention
  11. 1.3 Government Intervention - notes
  12. 1.3 Government intervention - questions
  13. 1.3 Government intervention - simulations and activities
  14. 1.4 Market failure
  15. 1.4 Market failure - notes
  16. Section 1.4 Market failure - questions
  17. Section 1.4 Market failure - simulations and activities
  18. 1.5 Theory of the firm
  19. 1.5 Theory of the firm - notes (HL only)
  20. Section 1.5 Theory of the firm - questions
  21. Section 1.5 Theory of the firm - simulations and activities
  22. Print View

Example 2 - the market for fish

Letīs Do Some Economics


fish01Look at another example, and make sure that you understand how the shifts and movements occur and interact. Now work through the following changes, and adjust the diagram as you go. After you have had a go at each change, follow the answer link below and see if you made the right changes.

Figure 1 represents the market for fish at the start of a week. Assume that all demand and supply changes occur without delay, i.e. they react instantly. The changes given are all sequential. In other words use the diagram you end up with as the starting point for the next change.


Figure 1 The Market for fish

Change 1. There are very rough seas and small boats cannot fish.

Change 1 - answer

Change 2. It is Thursday, a day where the demand for fish is very high. Seas become even rougher and even fewer boats can go to sea.

Change 2 - answer

Change 3. It is Friday, when demand for fish is even higher. Storms weaken, though, and fishing becomes easier.

Change 3 - answer

In this example, we have seen price rises accompanied by an increase in sales. This does not mean that the rules of price and demand are wrong, just that in such cases there will have been changes in the determinants, other than price, of supply and demand. Be careful to separate shifts from movements. Notice that movements along a demand curve come as the result of movements (shifts) of supply.