In the market for electric vehicles (EVs), more vehicle manufacturers are releasing electric models at the same time that EVs are becoming more popular with consumers. As a result, we can expect an

Question

Quizplus · Accepted Answer

With more vehicle manufacturers entering the market and an increasing popularity of EVs among consumers, the supply of EVs will increase. This increase in supply, given that demand remains relatively constant, will lead to a decrease in the equilibrium price and an increase in the equilibrium quantity of EVs. Therefore, choice C is the best answer.

In the Market for Electric Vehicles (EVs), More Vehicle Manufacturers