New York City has licensed street vendors for more than a century.  It currently provides only a small number of general vending licenses.  The waiting list is very long and, aside from military veterans, someone trying to get a license today has no chance.  One popular item for street vendors is handbags.  Use a supply and demand model to show how licensing affects the market price and quantity of handbags sold by New York street vendors.

Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter8: Understanding Markets And Industry Changes
Section: Chapter Questions
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New York City has licensed street vendors for more than a century.  It currently provides only a small number of general vending licenses.  The waiting list is very long and, aside from military veterans, someone trying to get a license today has no chance.  One popular item for street vendors is handbags.  Use a supply and demand model to show how licensing affects the market price and quantity of handbags sold by New York street vendors.

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