1. Given the market for electric cars: a) Give practical examples of what the main three categories of determinants of de-mand for electric cars could be. b) Assuming a simple linear function, write down the generic functional form of the demand function for electric cars, accounting for the . c) Give two practical examples, respectively, of what substitute and complementary goods with respect to electric cars could be
1. Given the market for electric cars:
a) Give practical examples of what the main three categories of determinants of de-mand for electric cars could be.
b) Assuming a simple linear function, write down the generic functional form of the
c) Give two practical examples, respectively, of what substitute and complementary goods with respect to electric cars could be.
d) Suppose the federal government decided to offer subsidies to buyers of electric cars. Explain shortly, how would this influence the demand on this market? In a diagram, draw a pre- and post-subsidy demand curve.
e) Explain the economic motivation staying behind the government subsidies to buyers of electric cars
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