An increase in the price of lithium-ion batteries raises the cost of manufacturing Teslas (electric cars). As a result, the market changes to a new equilibrium because of _______.(A) a surplus of electric cars.(B) an increase in the demand for electric cars.(C) a leftward shift in the demand curve for electric cars.(D) a leftward shift in the supply curve for electric cars.

Respuesta :

Answer:

The answer is D.

Explanation:

The increase in the price of Lithium-ion(a raw material in the production of electric cars) will increase the cost of production i.e the cost of producing teslas.

An increase in cost of production will reduce production of Teslas and this means there will be a a leftward shift in the supply curve for electric cars, meaning the supply for Teslas will reduce..

Producers are motivated to produce more at a lower cost of production

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