Q3 Scenario - Yoga classes: perfectly competitive. constant cost industry with identical [inns . 1 yoga class has 1 instructor and 2t} students - New law introduced: max in students per class - What is the eect on market price, market quantity. rm quantity. and number of i'n'ms in the short run and long. run? MARI-{Er [Draw the graph and label it} 4. Consider the perfectlyr competitive donut market. Market Demand is the usual downward-sloping curve and Market Supply, the usual upward sloping curve. Two changes happen in this market. [1} Consumers get more health conscious and are less willing to pay for donuts at eyeryI quantity. {2] The cost ofsugar used in donut production decreases. 4A]. what is the SHORT-run impact of these two changes on [1} market price, [2} market quantity, E33 firm quantity and {4] number of firms in the market. Explain your reasoning using a clearly labeled diagram. A diagram alone is not sufcient, you need to explain your reasoning as well. [Draw the graph and label it} 433. what is the LUNG-run impact of these two changes on [1} market price, [2} market quantity, 33 firm quantity and {4] number ofrms in the market. Explain your reasoning using a clearly labeled diagram. A diagram alone is not sufcient, you need to explain your reasoning as well. [Draw the graph and label it}