Draw a graph; In this illustration, the original equilibrium point is at P1 and Q0. If the
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Draw a graph;
In this illustration, the original equilibrium point is at P1 and Q0. If the government introduces a subsidy for electric vehicles, the demand curve shifts to the right to D2, resulting in a new equilibrium point at P2 and Q2. At this new equilibrium, the price of the China-made Model 3s has increased, but the quantity sold has also increased due to the subsidy.
Related Book For
Microeconomics An Intuitive Approach with Calculus
ISBN: 978-0538453257
1st edition
Authors: Thomas Nechyba
Posted Date: