a)With the aid of the demand and supply curves, explain the effect on the equilibrium price and

quantity of hand sanitisers for the following events:

(i) Consumers use the hand sanitisers more often to prevent the infection of COVID-19;

(5 marks)

(ii) Government provides subsidies to the producers of hand sanitisers. (5 marks)

b)Due to the unprecedented outbreak of infectious viruses, the demand for surgical masks has

increased substantially. However, manufacturers are unable to produce enough surgical masks

to satisfy the demand within a short period of time. As a result, this has caused the problem of

scarcity in the surgical masks market. In view of this, some consumers think that sellers

should limit the sales of surgical masks to their customers.

(i) Define "scarcity". Discuss any TWO (2) effects arising from the problem of scarcity

in the surgical masks market. (8 marks)

(ii) "In view of this, some consumers think that sellers should limit the sales of surgical

masks to their customers."

Explain whether the above is a positive or normative statement. (3 marks)