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Assume the following demand and supply equations: Qd: 11.5- 12.5p Qs: 5.5 + 7.5p (a) If a seller charges a price of .5 per unit,

Assume the following demand and supply equations:

Qd: 11.5- 12.5p

Qs: 5.5 + 7.5p

(a) If a seller charges a price of .5 per unit, what will happen?

(b) At what price, there will be no shortage and no surplus? Prove your answer.

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