Seychelles Tourism Industry Case Study
There is a huge exportation of tourism and fish in Seychelles. This 2 component components are the actual major factors that are effecting the economy of the country. During the time that the Somalian pirates entered to entered to the Seychelles water zone, this had a big negative impact on both fishing anf tourism industries. In this case, government has to guarantee the security of citizens with respect to the help from other international organizations as well.
Regarding to the statement that the Seychelles relies greatly on its fishing industry, this should lower the supply of fish coming inside the industry as the fishermens are scaring and not fishing anymore. So that, regarding to the law of demand, demand for fish suppose to go up. …show more content…
The total number of fish that the Seychellois willing to buy will greatly decrease. The people will be under the threat of piracy, which makes them less active on the economy, especially for one of the most important component, fish. When we looked at the graph, this problem will cause a shifting to the left on the demand curve. The price will go up and the quantity demanded of the product will go down.
The income effect will come into play as the prices of fishes will go up, although the income will not be the changing factor in this case. The thing is, this would have impact on the quantity demanded on the fish as well. People will not be able to afford more to buy the fish because they will still have same amount of money and of course they can not over pay for a meal. There are many substitutes of fish as a food. In this respect, fish will become kind of luxury food and of course this will not be no longer in the consideration of costumers in the same income …show more content…
The people that are selling the fishes should know that consumers are being able to pay until for a specific limit and afterwards the higher price effects the demand directly and the economy loses the equilibrium point. If the given selling prive is more than what it should be, the surplus pushes the price to go down and at any price under the equilibrium point, the shortages pushes the prie to go up. Therefore, the equilibrium becomes to the normal point with the given either external or internal effects in the
Regarding to the statement that the Seychelles relies greatly on its fishing industry, this should lower the supply of fish coming inside the industry as the fishermens are scaring and not fishing anymore. So that, regarding to the law of demand, demand for fish suppose to go up. …show more content…
The total number of fish that the Seychellois willing to buy will greatly decrease. The people will be under the threat of piracy, which makes them less active on the economy, especially for one of the most important component, fish. When we looked at the graph, this problem will cause a shifting to the left on the demand curve. The price will go up and the quantity demanded of the product will go down.
The income effect will come into play as the prices of fishes will go up, although the income will not be the changing factor in this case. The thing is, this would have impact on the quantity demanded on the fish as well. People will not be able to afford more to buy the fish because they will still have same amount of money and of course they can not over pay for a meal. There are many substitutes of fish as a food. In this respect, fish will become kind of luxury food and of course this will not be no longer in the consideration of costumers in the same income …show more content…
The people that are selling the fishes should know that consumers are being able to pay until for a specific limit and afterwards the higher price effects the demand directly and the economy loses the equilibrium point. If the given selling prive is more than what it should be, the surplus pushes the price to go down and at any price under the equilibrium point, the shortages pushes the prie to go up. Therefore, the equilibrium becomes to the normal point with the given either external or internal effects in the