Electric Vehicle Market Group members: Yinming Ye, Danyang Gao ECON 301

What is electronic vehicle? The vehicle uses electric to instead of fossil fuel as energy. Experience Good: You know the quality after you purchasing

Advantage of Electric Vehicle Electricity vehicle: cost $0.2 per mile Conventional Vehicle: cost $1.2 per mile

Oligopoly Market = Diversified + high barrier This is an oligopoly market has numbers models of vehicle and a high barrier to entry Diversified Product Produce is diversified as different models; dimensions, body styles, and powertrains. High Barrier Patents of core technologies such as battery, electric motor and plug-in charging block firms want to entry

Competitor Complement Substitute Conventional Vehicle Electricity Rate Auto Policy Auto Repair & Service Substitute Public Transport

Seller Market Special Parts Government producers have more market power than consumers. Special Parts producers spend high price buying special parts. Government Consumer get $2,500 to $7,500 tax credit for purchasing electric vehicle.

Graph of Electric Vehicle Market Demand: Elasticity demand curve Supply curve comes from marginal cost above the minimum AVC Electric vehicle market is an attracting market which has large producer surplus and profit.

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