In Country Oldtime, cigarettes are forbidden, so people trade cigarettes in a

black market. The cigarette demand is Q_D=10-2P, and the cigarette supply is Q_S=4P+4.

b: The government becomes aware of the black market and reinforces the

police so that half of the cigarette supply would be seized and destroyed. Under

this circumstance, what is the new equilibrium price and quantity?

[2.5+2.5 marks]