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20-10-2020
Business

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Assume we are looking at the electric car market. How would a major increase in gas price affect this market?

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PiaDeveau PiaDeveau

20-10-2020

Answer:

Demand increases

Explanation:

There are replacements for petrol and electric vehicles. So, as petrol prices grow, sales of electric vehicles will grow. Market curve will move to the right and that both prices and quantities will rise.

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