O Macmillan Learning Suppose the cost of lithium-ion batteries, an input into the production of electric vehicles, has dropped more steeply than expected. The accompanying graph depicts a market for electric vehicles. Demonstrate the effect of a reduction in the price of lithium-ion batteries by adjusting the accompanying diagram. Equilibrium price is now $ Equilibrium quantity is now thousand. thousand. Price ($1000s) 100 90 80 70 60 50 40 30 20 10 0 0 1 Market for Electric Vehicles 2 3 5 4 Quantity (1000s) 6 S O 7 8 9 10

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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O Macmillan Learning
Suppose the cost of lithium-ion batteries, an input into the
production of electric vehicles, has dropped more steeply
than expected. The accompanying graph depicts a market for
electric vehicles. Demonstrate the effect of a reduction in the
price of lithium-ion batteries by adjusting the accompanying
diagram.
Equilibrium price is now $
Equilibrium quantity is now
thousand.
thousand.
Price ($1000s)
100
90
80
70
60
50
40
30
20
10
0
0
1
Market for Electric Vehicles
2
3
4
5
Quantity (1000s)
€
6
7
S
D
8
9
10
Transcribed Image Text:O Macmillan Learning Suppose the cost of lithium-ion batteries, an input into the production of electric vehicles, has dropped more steeply than expected. The accompanying graph depicts a market for electric vehicles. Demonstrate the effect of a reduction in the price of lithium-ion batteries by adjusting the accompanying diagram. Equilibrium price is now $ Equilibrium quantity is now thousand. thousand. Price ($1000s) 100 90 80 70 60 50 40 30 20 10 0 0 1 Market for Electric Vehicles 2 3 4 5 Quantity (1000s) € 6 7 S D 8 9 10
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