a) The implementation of new environmental regulations offering substantial tax incentives for consumers buying electric vehicles, like Tesla's, will likely increase the demand for our vehicles. According to the law of one of the most important factors affecting market equilibrium, consumer preferences play a crucial role. As the incentives make EVs more financially attractive to buyers, the relative price of our electric cars compared to traditional petrol cars decreases, shifting the demand curve for Tesla vehicles to the right. This shift indicates that more consumers are willing to purchase our vehicles at the prevailing market prices, potentially leading to an increase in the equilibrium quantity sold.

b) Technological advancements resulting in a more efficient production process and reduced manufacturing costs can positively affect both the pricing and sales of Tesla cars. By lowering production costs, we can potentially reduce the selling price of our vehicles while maintaining or even increasing profit margins. This could stimulate higher sales volume, as the lower prices may draw in more customers. Furthermore, with the cost savings, Tesla could choose to maintain current prices, thereby increasing profitability, or use the cost savings to offer promotions or discounts, which could significantly boost sales without compromising the company's financial position. In either case, the improved efficiency is expected to have a positive impact on the market equilibrium by making our vehicles more accessible and attractive to a wider range of consumers.