Question

Show the change in the market for electric cars that is consistent with the following statement: "When the price of electric cars is expected to rise in the near future, the present price of electric cars rises."

Answer 1

Price expectations about the future is another determinant of demand.

Explanation:

For example, An increase in the expected future price of electric cars may increase current demand for electric cars.

Individuals would naturally want to stock up more of electric cars in anticipation of an increase in their prices.