Finally, let's say there are 50 firms in a perfectly competitive market, each with firm supply curves of q = 0.4P - 15
Market demand is given by Q = 750P - 30P.
a) Find the equilibrium market quantity and price.
b) Suppose one of the factors that affects demand changes such that market demand is now Q = 500 - 20P.
Tell me a factor that could have changed to create this shift (NOT tastes), how the factor changed (increaed or decreased), and then find the new equilibrium price and quantity.