Price per Ice-cream (Rs.) Demand for Ice cream (Qd) Supply for Ice cream (Qs)

140 500 1500

120 750 1200

100 1000 1000

80 1250 750

60 1500 600

40 1750 300

(i) Draw the market equilibrium for Ice cream.

(ii) Find out equilibrium price and quantity.

(iii) Is there surplus or shortage in the market at price Rs.40? At price Rs.120?

(iv)What is the maximum price that consumer is willing to pay for 1500 bottles?

(v)What is the minimum price that producer is willing to accept for 1500 bottles?