Draw supply and demand graphs to illustrate a scenario

First, read the explanation above.

In 2021, the federal government adopted legislation to invest in the production of electric buses for schools. The idea was “helping school districts across the country buy clean, American-made, zero emission buses, and replace the yellow school bus fleet for Americas children. The legislation also invests $5 billion in zero emission and clean buses and $2.5 billion for ferries. These investments will drive demand for American-made batteries and vehicles.” Assume that this investment will stay in place.

• Draw a market for American made batteries in the U.S. Time one is the market before this legislation was adopted. On the same image, add new curves for what happens in the battery market after federal funds are spent on clean buses and label them.

SUBMIT:

• Scan or take photos of the drawings and attach them.
• Writing:
• Explain with one-two sentences why you drew what you did (refer to the relevant nonprice determinant of either supply or demand as appropriate for the example). Please keep the following in mind: A supply and demand graph will represent just one market. Talk about what you would expect to happen to the two “market outcomes” in the supply and demand model based on the change mentioned.