Draw a graph that depicts a downward sloping demand curve

Reference no: EM133300831

Question: Draw and label a graph that depicts a downward-sloping demand curve and an upward-slopping supply curve in the market for electric vehicles. Assume that this market is in equilibrium.From the article: "...during a call with analysts... to discuss...[Tesla's]... earnings, [Elon Musk] said that prices of most commodities are set to fall next year, which would lower costs, and warned of a 'brutal recession' ahead." Refer to the graph you drew to answer the previous question to describe how the supply curve or demand curve would be affected by: (a) a decrease in the price of commodities used in the production of electric vehicles; (b) a recession, which would cause a decrease in the incomes of automobile buyers. Describe the net effect on the equilibrium price and quantity of electric vehicles as a result of these two changes.

Reference no: EM133300831

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