The market for an industrial chemical has a single dominant firm and a competitive fringe. The dominant firm acts as a price leader, setting a price for the chemical; and each firm in the fringe acts as a price taker. In other words, the leader selects a price, and the followers take that price as given and choose their quantities in response. The leader commits to produce whatever quantity is demanded at the selected price, after the competitive fringe has sold its chosen output. Market demand (Qp) and competitive fringe supply (Q ) are as follows: QD = 140 - 32P QF = 60 + 8P where quantities are in thousands of gallons and price is in dollars per gallon. Marginal cost for the price leader is constant at MC = $0.75 per gallon. Let QL denote the quantity sold by the price leader.As the leader increases the price P, then O QF falls while Q rises QF rises but QL falls QF and Qu both fall OOOOO none of the other choices is correct OF and Q both rise the sum of QF and Q rises