Question 28

The market for bagels in New York City is perfectly competitive. In New York City, the daily demand for bagels is Qd = 20,000 - 5,000P, which is graphed as D in the figure below. The industry supply of bagels in NYC is Qs = -4,000 + 10,000P, which is graphed as S in the figure.

4.00 3.00 2.40 Price of bagels (dollars) S 2.00 1.80 1.20 1.00 D O 5,000 10,000 15,000 20,000 Quantity of bagels (per day)