Question 1

a.Suppose Ms. Zeenia demands 150 units of ice cream at price 50, if the price tends to increase to 60 she reduced her demand by 30 units while a further increase in the price by 10 rupees led to the reduction in the quantity demanded to 90 units ceteris paribus. Given the information above drive the demand function.

b.Now suppose the price of milk has increased, illustrates graphically if there would be any change in the demand function elucidated in part a. Also, explain why or why not?