Consider again the market for Atlantic lobster presented in Q#1 of the previous assignment where the annual demand and supply for lobster is given by the following equations: 100 0.2 D P = − Q , and 25 0.1 S P = + Q , where P is the price per kg in dollars, QD and QS are respectively the quantity demanded and the quantity supplied (in thousand of Kgs). The government imposes a quota of 150 thousand of kgs per year in the lobster industry and licenses are issued to allocate the rights to harvest lobster. .

1. Consider again the market for Atlantic lobster presented in Q#1
of the previous
assignment where the annual demand and supply for lobster is
given by the
following equations: 100 0.2
D P = − Q , and 25 0.1
S P = + Q , where P is the price per kg
in dollars, QD and QS are respectively the quantity demanded
and the quantity
supplied (in thousand of Kgs). The government imposes a quota
of 150 thousand
of kgs per year in the lobster industry and licenses are issued to
allocate the rights
to harvest lobster.