Price that consumers pay and the quantity of cakes

Reference no: EM13183637

The demand in the cake market is Qd =500 - 10p and unrestricted supply is Qs = 100 + 10p. Suppose the government imposes a baker's license that reduces cake supply to Q¢s =10p. Calculate the numerical values of the following:

a. Price that consumers pay and the quantity of cakes after imposition of the baker's license.

b. Change in Consumer Surplus as a result of the license.

Reference no: EM13183637

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