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In 2010, Americans smoked 315 billion cigarettes, or 15.75 billion packs of cigarettes. The average retail price (including taxes) was about $5 per pack. Statistical studies have shown that the price elasticity of demand is roughly -0.30, and the price elasticity of supply is aout 0.40. Using this information, derive linear demand and supply curves for the cigarette market. Let the demand curve be of the general form: Q a-bP and the supply curve be of the general form: Q-c+dP where Q is billions of packs of cigarettes and a, b, c, and d are constants. The equation for the demand curve is OA. Q 20.475 - 1.26P Ов. Q-4725-20475P Oc. Q-20.475-0.945P OD. Q-4.725-0.945P OE Q-20.475 0.945P.

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ANSIOER niven @yant = |s 75 billion fack ot. Cǐgq乍eHeA Eles tuty ot demand 03 Generel dlemend uve a-bf demand Cuvebp b. Ap Pld- this value in etua Hono pu thts velse m generel demond cunve gue on q2 20. 47厂2 So the equato n of demand curve is

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