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Isaiah T. Fields Step A. Electric Cars will be affected by the dynamics of the market economy. Step B. Make up two different headlines for two graphs relating to factors causing a Shift in Demand . Headline affecting change in demand for electric cars in 2023: Income Changes, “U.S. Strong Economy” Reason for the shift: “Confidence in buying and switching to electric cars due higher paying jobs creation and lower inflation” Explanation: Due to the strong U.S. economy comeback and income changes after the COVID 19 virus and the addition of thousands of new high paying jobs to the U.S. economy will cause the demand for electric cars to increase . The demand curve for electric cars to increase. As a result of this increase in demand, a shortage will occur because more people will be demanding (purchasing) electric cars. As a result, the demand curve for electric cars will shift to the right, the price will rise to the point where the shortage is eliminated and a new equilibrium price will be established. Headline affecting change in demand for electric cars in 2023: Preferences, Consumers prefer other than electric cars due to battery charge concerns Reason for the shift: Consumer awareness of electric cars problems has increase Explanation: Due to the consumers preferences and the rapid deterioration of the battery and explosions will cause the demand for electric cars to decrease creating a surplus . The demand curve for electric cars to decrease. The demand curve for electric cars will shift to the left and the equilibrium price and quantity will decrease.

Step C. Make up two different headlines for two graphs relating to factors causing a Shift in Supply . Headline affecting change in supply for electric cars in 2023: Global Event, “The War in Ukraine Intensifies” and “The War in Israel Starts” Reason for the shift: Increase war conflicts Explanation: Due to the global events , “the war in Ukraine and now the war in Israel”, the price of gas has increased and this will cause the supply for electric cars to increase creating a shortage . The supply curve for electric cars to increase. The supply curve for electric cars will shift to the right and the equilibrium price and quantity will increase . Headline affecting change in supply for electric cars in 2023: Technology, the impact on supplying electric cars due to technological advancements affect production costs Reason for the shift: Higher production costs lead to lower production of electric cars Explanation: Due to higher production costs to make electric car batteries and other parts will cause the supply of electric cars to decrease and the price to increase. The supply curve for electric cars to decrease. As a result of the increase in expenses (cost production), they will not be able to produce the same quantity of electric cars for the same cost before the technological advances so that the supply decreases for all electric cars at all prices . Consequently, they are decreasing the supply of electric cars which would lead to a shortage . In order to eliminate the shortage, they are going to have to raise the price for electric cars to a new equilibrium price.

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