In the market for electric vehicles (EVs), more vehicle manufacturers are releasing electric models at the same time that consumer preferences are changing toward EVs. If manufacturers are releasing new electric models at a faster rate than consumer preferences are changing toward EVs, we can expect

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When manufacturers release new electric models at a faster rate than the change in consumer preferences, it leads to an increase in supply without a corresponding increase in demand. This results in a decrease in the equilibrium price due to the surplus of EVs and an increase in the equilibrium quantity as the market adjusts to the new supply level.

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