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What factors might lead to a shift in the demand curve for electric cars, and how would this affect the market?

Factors leading to a shift in the demand curve for electric cars might include changes in consumer preferences toward sustainability, government incentives for electric vehicle purchases, improvements in charging infrastructure, or increases in the price of petrol. Any of these factors could cause the demand curve to shift rightward, reflecting an increase in demand at every price level. If supply remains constant, the new equilibrium would be at a higher price and quantity. Conversely, negative factors like reduced government support or technological issues could shift the demand curve leftward, leading to a lower equilibrium price and quantity.

Answered by: David Y Economics Tutor
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