Homework Answers
Ans) a) When Tesla announces decrease in price of their electric vehicles, demand for Nissan's electric vehicle will decrease, as consumer prefers buying cheaper alternative. And it suggests that both are substitute goods.
It will shift demand curve to the left i.e downwards.
B) It will not change the supply of Nissan's electric cars as it is not a supply side shifter.
C) Price will decrease.
D) Quantity decreases
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