Suppose instead of a tax, the city requires all parties to obtain a license, and only 50 licenses will be made available for October 31. Assume they can perfectly enforce this policy, and there is no way for a party to happen without a license. What is the new price and quantity?

Let be the quantity after licenses are required and be the price after licenses are required.

Problem P56.2.4 0/2 points (graded) Suppose instead of a tax, the city requires all parties to obtain a license. and only 50 licenses will be made available for October 31. Assume they can perfectly enforce this policy. and there is no way for a party to happen without a license. What is the new price and quantity? Let QL be the quantity after licenses are required and p5 be the price after licenses are required. 29\" = x 50 QL = 125 X 125 C-'ua