In Alabama,it Is Illegal to Hunt Alligators Without a License

question 135

Essay

In Alabama,it is illegal to hunt alligators without a license.The government controls the number of licenses that can be purchased each year; thus,there is a limit on the number that can be purchased.Assuming there is an unlimited supply of alligators in Alabama,what would happen to the price and quantity of alligator sausage if the government stopped controlling the number of these hunting licenses?

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Definitions:

Long-Run Supply Curve

A graphical representation that shows how the quantity of goods supplied by an industry changes over time in response to changes in price, assuming that all inputs can be varied.

Increasing-Cost Industry

An industry in which the costs of production increase as the industry's output expands, typically due to resource limitations or increased demand for inputs.

Slope

A measure of the steepness or incline of a line, representing the rate at which y-values change for each unit increase in x-values.

Pure Competition

A market structure characterized by a large number of small firms, identical products, and free entry and exit from the market.