QUESTION 5
The equilibrium price of a small, all-electric SUV is $50,000. A study comes out that says drivers of electric vehicles are happier than drivers of gasoline-powered vehicles. If all other factors are held constant, which of the following scenarios could happen?
A. The price of the electric SUV increases to $60,000 because of a supply shift.
B. The price of the electric SUV increases to $60,000 because of a demand shift.
C. The price of the electric SUV decreases to $40,000 because of a demand shift.
D. The price of the electric SUV stays at $50,000 because of both a demand shift and a supply shift.