Say the demand schedule for ice cream cones can be represented by the equation Qd=160-3P and the supply schedule can be represented by the equation Qs=140+7P.

Q;1 Calculate the equilibrium price and quantity in this market. Calculate Consumer surplus and producer surplus at this equilibrium.

Q.2 Say the Canadian Association of Ice-Cream Eaters complains that the equilibrium price calculated in part a is too high, and their member cannot eat enough at this price. They lobby the government to impose a price ceiling on cones $1. What is the quantity demanded at this price? The quantity supplied? Is there a shortage or surplus? How big is it? What are the new consumer surplus and producer surplus? Is the total surplus more or less, and by how much?