The expanding electric vehicle ev battery industry is...

The expanding electric vehicle (EV) battery industry is creating an increase in demand for mechanical engineers, a key resource in the EV battery industry. If mechanical engineers skilled in this area are in very short supply, then everything else remaining constant, which of the following is most likely? COPYRIGHTED MATERIAL. NOT TO BE SHARED. Question 31 options: The long-run market supply curve of EV batteries will be upward sloping. The long-run market supply curve of EV batteries will be perfectly elastic. The long-run market supply of EV batteries will be downward sloping.

Transcript

00:01 Hello, so in this video, we are going to look at the effect of increase in demand of electric vehicles.

00:08 So we are given a piece of news saying that around the world demand for electric vehicles is growing according to the center for solar energy and hydrogen research.

00:24 There have been more than 320 ,000 new evs.

00:30 Registrations in 2014, bringing the total global market up to 740 ,000 vehicles.

00:38 So we want to know what is the effect of the increase in the global demand for electric vehicles on the market of electric vehicles and on individual electric producers in the short run.

00:51 So let's just draw a graph and illustrate the effect.

00:56 So if we are looking at the ev market, we should be looking at the typical supply and demand curve, which looks like this, an upward supply and a downward demand.

01:10 And we know that demand curve, demand has increased, right? so demand curve shift to the rate.

01:18 So originally, this is the equilibrium quantity.

01:23 This is the original equilibrium price.

01:26 I'll denote it as pe.

01:28 And given there is an increase in demand, we know that the market price for electric vehicles has risen to a higher level.

01:39 I would denote it as p -prime.

01:41 Now, for individual, i would say individual, individual ev producer, they should look like this, right? assume that this individual producer is in the purposely competitive market.

02:00 Then they face a flat demand curve originally that equals to this market price...

Question

Please give Ace some feedback