The Drop down options are: Demand Determinant: Income, Price of substitue or com

Question

The Drop down options are:

Demand Determinant: Income, Price of substitue or complement, Tastes, Expectations, Number of buyers, and None.

Supply Determinant: Input prices, Technology, Expectations, Number of sellers, and None.

3. Problems and Applications Q3 Consider the market for electric cars. Assume electric cars are a normal good. For each of the following events, identify which of the determinants of demand or supply are affected. If demand is unaffected by this event because it creates a supply change, select the "None" option under the "Demand Determinant" column. Similarly, if supply is unaffected by this event because it creates a demand change, select the "None" option under the "Supply Determinant" column. Event Engineers develop new automated machinery for the production of electric cars. An improvement in the public transportation network reduces the need to have a car. An economic boom raises people's wealth. A strike by aluminum workers raises the price of aluminum The price of gas-powered cars falls. Demand Determinant Supply Determinant

Explanation / Answer

DemandDeterminant Supply Determinant None Input Prices (reduced) Price of Substitute(Dropped) None Income Expecations Expecations Input price (increases) Price of Substitute(Dropped) Expecations

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.