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(Solved): 14. Problems and Applications Q3 Consider the market for electric cars. Assume electric cars are a ...
14. Problems and Applications Q3 Consider the market for electric cars. Assume electric cars are a normal good. creates only a supply change, select the "None" option under the "Demand Determinant" column. Similarly, if supply is unaffected by this event because it creates only a demand change, select the "None" option under the "Supply Determinant" column.
Show the effect of the following event on the market for electric cars: Engineers develop new automated machinery for the production of electric cars.
Show the effect of the following event on the market for electric cars: People increase their concern for the environment.
Show the effect of the following event on the market for electric cars: An economic boom raises people's wealth.
Show the effect of the following event on the market for electric cars: A strike by aluminum workers raises the price of aluminum.
Show the effect of the following event on the market for electric cars: The price of gas-powered cars falls.
Expert Answer
A.) Engineers develop New automated machinery: In this case, there will be no change in Demand but there will be an increase in supply which cause the supply curve to shift rightwards. So, Determinant of Demand: None Determinant of Supply: Technolog