In Agfa, at a market price of $3 per kilo, there is a shortage of 60 kilos of basmati rice. For each 50-cent increase in the price, the quantity demanded drops by 8 kilos, while the quantity supplied increases by 12 kilos. a) What will be the equilibrium price? $4.50 b) What will be the surplus/shortage at a price of $5.50? surplus of 40 kgs