Concern for the environment among consumers causes consumers to substitute away from traditional autos to electric-powered autos
1 answer:
Answer:
the equilibrium price and quantity of traditional autos decreases
the equilibrium price and quantity of electric cars increases
Explanation:
Due to the decrease in demand for traditional autos, there would be a leftward shift of the demand curve for traditional autos. As a result, equilibrium price and quantity would fall.
Due to the increase in demand for electric-powered autos, there would be a rightward shift of the demand curve for traditional autos. As a result, equilibrium price and quantity would increase.
Please check the attached images for graphical illustrations
You might be interested in
Answer:
2.96% will be effective rate of the investment
Explanation:
First year:
1,000 x 1 + 10%) = 1,100
<em><u>Second year: </u></em>
1,100 + 3,000 = 4,100 invesmtent balance
4,100 x (1 - 5%) = 3,895
<em><u>Third year:</u></em>
3,895 + 2,000 = 5,895
5,895 x (1 + 2%) = 6012.9
<em><u>Fourth year:</u></em>
6012.9 + 500 = 6512.9
6,512.9 x (1+ 8%) = 7033.932
We calcualte rate that is equivalent with the following cash flow:
We solve using excel goal seek
0.029646151
FW = PW×(1.092)^n = $4,429,045.62
