3:10 1 4G A docs.google.com CONFIDENTIAL BM/AUG 2022/ECO162/104 QUESTION 2 The table shows the demand and supply of ice-cream. Price (RM) Quantity Demanded (units) Quantity Supplied (units) 2.50 550 150 3.00 450 250 3.50 350 350 4.00 250 450 4.50 150 550 a) Draw the market equilibrium diagram of ice-cream. State the equilibrium price and quantity. (3 marks) b) Assuming the government implements a price control of RM4.00, state the name of the price control and determine the amount of shortage/surplus. (2 marks) c) In the same diagram in question a), show the price control stated in question b). State two (2) advantages of this price control. (3 marks) d) Using separate diagram, show what happen to equilibrium price and quantity of ice-cream if a study claims that a key ingredient found in ice-cream can cause cancer (3 marks) e) State two (2) factors that would increase the supply of ice-cream and two (2) factors that would decrease the demand of ice-cream. (4 marks) @Hak Cipta Universiti Teknologi MARA CONFIDENTIAL