A. Now consider the demand curve that the company tesla is facing. At first, tesla dominated the electric vehicle market. Then, all Major car manufactures started developing electric cars and new companies emerged, such as lucid motors which recently released its first all-electric car. How does the entry of these firms affect the demand cure that tesla faces?

B. Tesla recently announced a price cut in order to estimate the economic impact of tesla's price cut, we need to come up with an estimate of the own price elasticity of demand for tesla cars.

Answer rating: 100% (QA)

A The entry of new firms like Lucid Motors into the electric vehicle market can affect the demand curve that Tesla faces in several ways Increased Com... View the full answer