1 Explain how you imagine the invention of cheap electric ca

1. Explain how you imagine the invention of cheap electric cars would affect the demand for gasoline? Why? Which determinant of demand or supply would be affected?

Solution

The invention of cheap electric cars would affect the demand for gasoline in its advantage. The innovative use of electric car is going to reduce the expenditure of petrol and diesel to the customers. This is going to increase the supply and demand of the cheap electric cars. The demand and supply graph would shift the curve line to right hand side which is the determinant of the graph.