Please look at question in the picture. Thanks!

M4. [18 points] Assume offering yoga classes is a perfectly competitive market with identical rms. The quantity is number of students and the price is a per-class price. A firm rents a space and hires instructors to run its classes, paying instructors a fixed wage rate per class. Currently, each class has 20 students and the market is in long-run equilibrium. Then, a new restriction is introduced capping classes at half the capacity of a room. This means classes are now 10 students each. a. [10 points] What is the short-run impact of this restriction on the yoga class market? Explain your reasoning. Be clear about any assumptions you are making. b. [8 points] Suppose classes remain capped at 10in the long run (i.e. half room capacity). What is the longrun effect of this cap on the yoga class market? Explain your reasoning. Be clear about any assumptions you are making