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One of the largest producer decided to leave the market and supply decreased by 60% meaning that if for every given price quantity supplied is:
Q=0.4(10+P)
Q=(10+P)/0.6
Q=(10+P)/0.4
Q=0.6(10+P)
What's new equilibrium quantity and price ?
P=30, Q=30
P=40, Q=20
P=30, Q=40
P=40, Q=30
Famous photographer wrote a blog about advantage of film over digital, what will be effects on the price and quantity? price increases, not enough information about quantity
both increases
both decreases
Price increases Quantity decreases
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