No single individual or authority decides vegetable prices in the market. Instead, prices are determined collectively by the free interaction between overall consumer demand and the total available supply brought by local vendors and farmers.
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No single individual or authority decides vegetable prices in the market. Instead, prices are determined collectively by the free interaction between overall consumer demand and the total available supply brought by local vendors and farmers.
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.