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Suppose an island was considering implementing a cap-and-trade for lobsters. Each person who catches a lobster would need to obtain one permit for…

Suppose an island was considering implementing a cap-and-trade for lobsters. Each person who catches a lobster would need to obtain one permit for each pound of lobster caught.  The demand for these permits is given by the function: QD=2000−20PQD=2000−20P. Where QDQD is the quantity of one-pound permits demanded and P is the price for a permit.

When there is an open-access regime for lobsters, how many pounds of lobsters will be caught?

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