Macroeconomics 9th Edition by David Colander

Exercise 23

The City of Pawnee issues a fixed number of fishing licenses each year.
a.Using the accompanying graph, demonstrate the effect of a limit of 100 fishing licenses at a cost of $20 per license.
b.Is there excess supply or demand for licenses Label the excess supply or demand on the graph.
c.What is the maximum amount a person would be willing to pay on the black market for a license
d.How much would Pawnee need to charge to eliminate the excess supply or demand