3. Effects of restricted supply The following graph depicts the market for fortune telling in the island nation of Wanwickia. The established Warwickian fortune tellers successfully lobbied the govemment to restrict access to the market for astrological services. All new psychics wishing to enter the market must first complete 1.600 hours of astrological training and obtain an astrological advisor license before setting up shop. The training and licensing process requires tuition and fees. The restricted market supply curve refiects the additional costs of obtaining the license. Suppose the Warvwickian courts strike down the restrictions and allow psychics to freely enter the fortune telling market. Adjust the appropriate curve to illustrate the effecr on the market. Supply Demand -o- Supply Demand QUANTITY (Thousands of fortunes told per year) PRICE (Dollars per brtune told)

3. Effects of restricted supply The following graph depicts the market for fortune telling in the island nation of Wanwickia. The established Warwickian fortune tellers successfully lobbied the govemment to restrict access to the market for astrological services. All new psychics wishing to enter the market must first complete 1.600 hours of astrological training and obtain an astrological advisor license before setting up shop. The training and licensing process requires tuition and fees. The restricted market supply curve refiects the additional costs of obtaining the license. Suppose the Warvwickian courts strike down the restrictions and allow psychics to freely enter the fortune telling market. Adjust the appropriate curve to illustrate the effecr on the market. Supply Demand -o- Supply Demand QUANTITY (Thousands of fortunes told per year) PRICE (Dollars per brtune told)

Principles of Economics, 7th Edition (MindTap Course List)

7th Edition

ISBN:9781285165875

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter22: Frontiers Of Microeconomics

Section: Chapter Questions

Problem 4PA

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