Topic Videos

Markets in Action: Supply and Demand for Electric Vehicles

Level:
AS, A-Level, IB
Board:
AQA, Edexcel, OCR, IB, Eduqas, WJEC

Last updated 27 Oct 2020

This resource provides a playlist of short videos exploring supply and demand factors affecting the fast-changing market for electric vehicles.

Video 1: Market overview – trends in electric vehicle sales and production

Video 2: Factors influencing market demand

Video 2: Factors influencing market demand for electric vehicles

Market demand factors include:

  • Real household (disposable) incomes
  • Industrial/corporate demand for new electric vehicles
  • Relative prices of substitutes e.g. mass transport
  • Relative prices of complements e.g. charging stations, costs of servicing new vehicles
  • Government subsidies paid direct to consumers
  • Impact of regulations e.g. UK government ban on new diesel / petrol cars post 2040
  • Cost of credit e.g. interest rates on electric car finance deals
  • Changing tastes and preferences including environmental concerns among consumers when making decisions

Video 3: Factors influencing market supply

​​Video 3: Factors influencing market supply

Market supply factors include:

  • Costs of components used in manufacturing e.g. batteries, computer hardware and software
  • Productivity in e-vehicle manufacturing
  • Economies of scale in e-vehicle manufacturing
  • Number of producers operating in the market
  • Impact on government subsidies paid to producers
  • Impact of government taxes levied on producers
  • Effects of changing production technologies / innovation
  • Costs of meeting regulatory compliance / environmental standards in the industry

Video 4: Comprehension exercise - changing market prices

​​​Video 4: Comprehension exercise - changing market prices

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