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Assume that a competitive market is currently represented by the following supply and demand equations: Qs 4P - 404N Qd 110- P 5C Pis theprice of the product, Nis the number of producers, and Cis the number of consumers There are currently 10 producers and 2 consumers. 1. (2 Points) Solve for the equilibrium price and quantity given the current number of producers and consumers. 2. (2 Points) Write the equilibrium price and quantity in a general form that allows the number of producers and consumers to vary. (HINT: your answers will be written as functions of C and N) 3. (1 Point) How many consumers must enter the market in order for the equilibrium price to increase by $1? 4. (1 Point) What effect (in terms of direction and magnitude) does the exit of one producer have on the equilibrium quantity?

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