The correct option is b) Shortage. Imposing a price ceiling below equilibrium makes the vaccine cheaper, substantially increasing consumer demand. Simultaneously, lower profit margins discourage manufacturers from producing it, creating an excess demand or shortage.
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Sellers lower prices to expand market demand and boost sales volume. Lower prices create temporary excess demand, shifting equilibrium toward higher quantities. Both benefit because buyers save money while sellers increase total revenues.
The farmer cost of production decreases substantially due to reduced resource usage and higher efficiency. Consequently, his willingness to supply at various prices increases and widespread adoption increases the overall market supply.
Demand for diesel cars, electric cars and public transport rises because they act as cheaper substitutes. Conversely, demand for petrol car accessories falls because accessories and petrol cars are complementary products used together.
I refute this statement because income growth increases demand primarily for normal goods. For inferior goods, higher purchasing power causes consumers to switch to superior alternatives, reducing the demand for cheaper low-quality goods.