Q1Cigars

The market for cigars in New York City is perfectly competitive, with the weekly demand and supply curves given by:

QD = 110 - 10P QS = 5 + 5P

Q1.1Equilibrium Price and Quantity

Using the equations, solve for equilibrium price and quantity in this market.

Q1.2Graph

Graph the demand and supply curves. Be sure to indicate equilibrium price and quantity. Check that equilibrium price and quantity in the graph match your answer to Q1.1 (above).

Price $ Market for Cigars 20 19 18 17 16 15 14 13 12 11 OHNWAKA DO DO 0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100 Quantity of CigarsPrice Supply Demand Quantity