Consider Canada's East Coast Lobster Fishery

Multiple Choice

Consider Canada's east coast lobster fishery. Suppose the government sets a production quota which is below the equilibrium quantity. Relative to the free- market equilibrium, we can expect the result to be

A) an increase in price and a decrease in deadweight loss.
B) an increase in price and the introduction of a deadweight loss.
C) a decrease in price and a decrease in deadweight loss.
D) a decreased price.
E) the free- market equilibrium price and quantity because the quota is not binding.