What happens to the fish market equilibrium when the wages paid to fishermen increase? In this blog post, we will explore this question and see what effect increasing wages has on the fish market equilibrium. We will use the example of a fishermen’s strike as a case study.
Effect of an increase in the wages paid to fishermen on the fish market equilibrium
An increase in the wages paid to fishermen will have a positive effect on the fish market equilibrium as fishermen will be able to buy more expensive fish and thus increase demand. This in turn will cause the price of fish to rise, which will encourage more fisherman to enter the industry and thus raise wages even further.
Although the increase in the wages paid to fishermen will have many effects on the fish market equilibrium, one of the most significant may be an increased demand for fresh seafood. This is because as fishermen earn more money, they are likely to spend a larger proportion of that income on food, which would then lead to an increase in demand for seafood.