For this problem- consider the market for electric cars (e-g-- Nissan.docx

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For this problem, consider the market for electric cars (e.g., Nissan Leaf). Each scenario described below will have an effect on this market. You must identify how the change described in that scenario affects the demand curve or supply curve (or both) in the electric car market. You must also determine how that change affects the equilibrium price ( P ) and quantity ( Q ) in the electric car market. - Scenario D - Improved technology substantially lowers the price of the batteries used as an essential input for the production of electric cars. - Scenario E-Electric cars and traditional, gasoline-powered cars are (consumer) substitutes. The price of gasoline-powered cars rises (perhaps due to a tax). - Scenario F - Both changes (Scenarios D and E) occur simultaneously You can write your answers for Problem 2 in the following table. Your answer in each cell should be that effect on demand, supply, price, or quantity is an increase, a decrease, no change, or unknown. .

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IJECEIAES

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