After decades of allowing only 15 liquor licenses, the zoning board of Sea Isle City, New Jersey decided to issue 5 additional permits in 2022, and 5 new bars are planning to open in the summer of 2023. If all else remains equal, what impact will this have on the supply curve for tavern-related sales in Sea Isle? Also, assuming that tavern-related customer demand is the same in 2023 as it was in 2022, how do you believe drink prices will be affected by the new licenses? Please explain why. Feel free to use the graph below in your answer.

 

Price P1 Q1 S D Q