MARKET EQUILIBRIUM

DEFINITION: In simple words, market equilibrium is nothing but the intersecting point of the supply
and demand curve in the equilibrium graph. Which means when the previously mentioned curves
are equal. Basically in this case there is very less tendency for changes in price at this situation.
(i) I have attached the graph of the market equlibrium of icecream below.

I hope the abouve image is clear.

(ii) The equilibrium price and quantity is mentioned in the above diagram.
Equilibrium price= Rs.100

Equilibrium quantity= 1000 bottles

The above details means that 1000 bottles cost Rs.100.

(iii) For Rs.40 there should be 400 bottles supply whereas the actual supply is 300 bottles which
is shortage
    For Rs.120 there should be 1200 bottles supply and the actual supply is also 1200 bottles,
therefore there is      neither shortage or surplus.
(iv) The maximum price consumer is willing to pay for 1500 bottles is Rs. 60.
(v) The minimum price the producer is willing to accept for 1500 bottles is Rs.140.