Question

demand curve for electric cars
price
quantity
breaking news
the price of electric cars drops because the government subsidizes manufacturers. consider the demand curve for electric cars. what happens?

Explanation:

According to the law of demand, when the price of a good decreases due to government - subsidized manufacturers causing a price drop, the quantity demanded of that good (electric cars in this case) increases. Movement occurs along the existing demand curve.

Answer:

There is a movement downwards along the existing demand curve for electric cars as the quantity demanded increases due to the price decrease.