Let D = Demand, S = Supply, P = Equilibrium

question 249

Multiple Choice

Let D = demand, S = supply, P = equilibrium price, Q = equilibrium quantity. What happens in the market for electric vehicles if the government offers incentives to manufacturers to produce more electric vehicles?

• A) D increases, S no change, P and Q increase
• B) S increases, D no change, P decreases, Q increases
• C) D and S increase, P and Q decrease
• D) D no change, S increases, P decreases, Q decreases

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