a. Tattoo artists are required to be licensed. Use a graph to show how a licensing requirement impacts the market for tattoo artists. Show the market equilibrium if there are no license requirements and also show the market equilibrium with license requirements. What happens to consumer surplus, producer surplus, and deadweight loss when licenses are required? b. Explain who wins and who loses from licensing regulation? Who pays for the licensing? Explain briefly. c. Use a graph of the tattoo market to show this positive effect. Show the market equilibrium on your graph and explain how this market equilibrium compares to the market equilibrium in which this benefit is not taken into account.
a. Tattoo artists are required to be licensed. Use a graph to show how a licensing requirement impacts the market for tattoo artists. Show the
b. Explain who wins and who loses from licensing regulation? Who pays for the licensing? Explain briefly.
c. Use a graph of the tattoo market to show this positive effect. Show the market equilibrium on your graph and explain how this market equilibrium compares to the market equilibrium in which this benefit is not taken into account.
e. Does licensing perform a better job of solving the asymmetric information problem than yelp or google reviews? i.e. does licensing provide a better signal of quality compared to other signals of quality such as online reviews? Explain why or why not.
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