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In the spring and summer of 2010 a record number 30 million Sockeye salmon spawned up the Fraser River. In 2009 there were only just over 1 million Sockeye spawning. Quite naturally the price of Sockeye fell from about $5.00 per pound to about $1 per pound.
a. Assuming that 30% of the Sockeye were caught each year, calculate the are price elasticity of Sockeye salmon, using the average price and quantity in your calculation.
b. Do you think the local fishermen were happy with such an enormous run of fish? Explain.
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