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The owner of the Inn at the Crossroads always had 2 guests who smoked and 5 guests who did not smoke. The guests who did smoke have a demand for smoking at the Inn at the Crossroads of QD = 20 - P (price per cigarette in copper pennies), while the guests who did not smoke found the smoke so irritating that they would each be willing to pay a copper penny to prevent a cigarette from being smoked. The cost of a cigarette is two copper pennies. All these facts, including the demand for cigarettes are known by everyone at the Inn. Suppose each non-smoker had the right to prevent any cigarette from being smoked, but would, in exchange for money, allow a cigarette to be smoked. How many cigarettes would be smoked? How much money would change hands?

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