Price Controls and Quotas: Meddling with Markets End of Chapter Problems In Maine, you must have a license to harvest lobster commercially, these licenses are issued yearly. The state of Maine is concerned about the dwindling supplies of lobster found off its coast. The state fishery department has decided to place a yearly quota of 80,000 pounds of lobsters harvested in all Maine waters. It has also decided to give licenses this year only to fishermen who had licenses last year. The accompanying diagram shows the demand and supply curves for Maine lobsters. Price of lobster (per pound) 522 20 18 16 14 0 20 40 600 100 120 140 Quantity of lobsters (thousands of pounds). what is the quota rent per pound of lobster when 80,000 pounds are sold?
