3. Vietnam's seafood exports in January and

February 2014 increased 23.5 percent compared

to 2013, and it is expected that the annual export

target will be met with relative ease.30

Supposing Vietnam's seafood market is per-

fectly competitive and originally at the long-run

equilibrium, draw graphs to answer the following

questions:

a. What was the effect of the increase in exports

on the market equilibrium price and quantity of

seafood in Vietnam?

b. What was the effect of the increase in exports

on the profit of an individual fisherman?

c. How will the number of fishermen in Vietnam

change in the long run? How does it affect the

seafood market?

d. With the change in the number of fishermen,

how will the profit of an individual fisherman

change?

e. With the change in profit in the long run, will

individual fishermen exit the market?