Electric Car Demand Growing, Global Market Hits 740,000 Units Around the world, demand for electric vehicles (EV) is growing according to the Centre…

Electric Car Demand Growing, Global Market Hits 740,000 Units

Around the world, demand for electric vehicles (EV) is growing according to the Centre for Solar Energy and Hydrogen Research. There have been more than 320,000 new EV registrations in 2014, bringing the total global market up to 740,000 vehicles.

Source: www.cleantechnica.com, March 28, 2015

a. Explain the effects of the increase in global demand for electric vehicles on the market for electric vehicles and on an individual electric vehicle producer in the short run.

b. Draw a graph to illustrate your explanation in part (a).

c. Explain the long-run effects of the increase in global demand for electric vehicles on the market for electric vehicles.

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