Purchase hybrid and all-electric passenger vehicles

Reference no: EM13693911

Micro Economics

1. Other things being equal, what will happen to automaker's profits if they are able to sell more vehicles using battery packs and thereby scale up battery production?

2. Why do you suppose that some automakers support the payment of government subsidies to consumers who purchase hybrid and all-electric passenger vehicles?

3. If input prices had increased as firms entered the lithium industry in response to rising demand, what would have been the shape of the long-run supply curve?

4. If the market demand for lithium were to decrease during the 2020s. what would happen to the market clearing price of lithium in the long run?

Reference no: EM13693911

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