Tuna Case Study Summary

If heavy concentrations of mercury are found in tuna, the labor industry will shrink. The quantity of workers demanded will outweigh the quantity of workers supplied, leading to a labor shortage until the problem is solved. Customers will be less inclined to eat tuna if they know it contains mercury. Thus, the individual demand and the market demand will decrease. As a consequence, individual supply and market supply for sellers will increase.
The law of supply demonstrates that as the quantity supplied increases so does the price. With prices continuing to rise and consumer demand dropping off, the price-per-unit cost of tuna would lose value because the quantity demanded at any individual price would decrease. As consumers’ tastes would begin to change, they would seek out substitute products. In this case, the substitutes are other sources of protein. Tuna then becomes more elastic, making consumers less price sensitive.
Eventually, the input price of labor would become too great, leading to downsizing, which hurts the economy as a whole. The loss of jobs would lead to a decrease in competition, and a decrease in trade between America, Europe and China. A left shift in the demand curve and a downward movement along the supply curve indicate a decrease in …show more content…
Before deciding to expand into different seasonal ventures, the businesses need to perform a SWOT analysis, and they need to conduct some research about the seasonal approach they’re about to delve into. The businesses need to compare their fixed costs and variable costs to see how their ventures will prospect in the short run versus the long run. Next, the fixed costs, such as rent, need to be added together. Afterward, the cost of the entire business needs to be calculated, including monetary and implicit costs. This way, the businesses can know if and how the fixed costs need to be dispersed throughout the fiscal