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

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

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

4. 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

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

6. 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.

7. 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.

8. Thank You