2. Demand and Supply. by NTSDE https://padlet.com/NTSDE/nzf6wlu5v92msng3 Scenario: Tesla’s Sales Decline Amid Political Controversy Recently, Tesla CEO Elon Musk has been involved in political controversies that have drawn both support and criticism from consumers. Some media reports suggest that this has negatively impacted Tesla’s sales, as a portion of the market is now reluctant to purchase Tesla vehicles. Meanwhile, increased competition from other electric vehicle (EV) manufacturers, such as BYD and traditional automakers, has also influenced Tesla’s market position. Additionally, higher interest rates have made it more expensive for consumers to finance vehicle purchases, leading to an overall decline in demand for cars, including Tesla models. At the same time, Tesla has increased production capacity with its Gigafactories, leading to a higher supply of vehicles in the market. a) Demand Changes o What factors in the scenario have caused a shift in Tesla's demand curve? o Has the demand curve shifted to the right (increase) or to the left (decrease)? Why? b) Supply Changes o What factors in the scenario have affected Tesla’s supply curve? o Has the supply curve shifted to the right (increase) or to the left (decrease)? Why? en-us 2025-02-10 02:10:28 UTC 2025-02-11 01:30:01 UTC hello@padlet.com https://padlet.net/icons/png/1f4ac.png https://padlet.com/NTSDE/nzf6wlu5v92msng3/wish/3323403073 a) BYD - alternative good, consumers are looking at BYD, a similar electric vehicle manufacturer as an alternative

Political reasons, Elon Musk is being invovled in political controversies


The demand curve has shifted to the left because there is a decrease in demand which means the curve shifts to the left


b) Tesla have improved their technology, which is allowing them to produce more vehicles

the supply curve

]]> 2025-02-11 01:27:50 UTC https://padlet.com/NTSDE/nzf6wlu5v92msng3/wish/3323403073 jakebatesbrannan https://padlet.com/NTSDE/nzf6wlu5v92msng3/wish/3323403737 The factors involved in the change of the demand curve are growing unrest towards the owner of the company as well as an increase in competition and greater costs associated with buying a vehicle.

]]> 2025-02-11 01:28:23 UTC https://padlet.com/NTSDE/nzf6wlu5v92msng3/wish/3323403737 jamiejessup https://padlet.com/NTSDE/nzf6wlu5v92msng3/wish/3323404254 The factors that have caused a shift in Teslas demand curve include:

  • Political Controversies

  • Increased Competition

  • Higher Interest Rates

The demand curve has shifted to the left (decrease) as people either no longer support Tesla due to controversy, they have switched comanies, or can no longer afford it. All of these have caused Tesla to loose customers therefore decreasing demand.

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