I will attach Unit III once I chose tutor. Create a final report for the industry you selected in Unit III detailing the impacts of the United States/China trade war. This report should address the f

For example, when coffee price is reduced, the consumers will purchase more coffee, which will lead to the movement down the demand curve (Yetter, 2023) . Similarly, an increase in price would cause an upward movement along supply curve since producers would be ready to supply more at higher prices. A shift in demand or supply curve occurs when the demand or supply is affected by something besides the price and the whole curve is shifted to the right or on the left (McEachern, 2019) . The factors that causes shift in demand curves include c hanges in consumer income, tastes, expectations or prices of related goods. For example , an increase in the income of the consumers will push the demand curve of electric vehicles to the right because more 3 individuals will be able to afford more EVs. The change in the supply curve can be impacted by other factor apart from prices and those factors include change in the cost of production, technology and t he government policy. For example, as battery technology improves and production costs decrease, the supply curve for electric cars will move to the right because manufacturers will be able to make more at each price . Market Equilibrium The intersection of the demand and supply curves is the market equilibrium, and it shows the price at which the quantity demanded matches the quantity supplied (Yetter, 2023) . At this the market equilibrium there is no shortage or surplus in the market. In case the price exceeds the equilibrium price, a surplus will be generated, and producers will be forced to reduce the price. On the other hand, w hen the price lowered than the equilibrium price, shortage of product will occur and this will cause the prices to be increased (McEachern, 2019) . How Shifts Affect Equilibrium Any movement of the demand or supply curve will change the market equilibrium. A rightward movement of the demand causes an increase in the equilibrium price and quantity and a leftward movement cause a decrease in the equilibrium price and quantity (Timilsina et al., 2025) . On the other hand, a shift in the supply to th e right due to increases in supply will lower the equilibrium price and will raise the equilibrium quantity, and vice versa (Yetter, 2023) . For example as the demand of the electric vehicles increases as a result of environmental consciousness, the price and quantity of the EVs in the equilibrium will rise. Conversely, when there is a shortage of lithium which is critical input in manufacturing batteries, the supply batteries reduces and this causes the equilibrium price to increase, and the equilibrium quantity will be low (McEachern, 2019) . 4 Application: The Electric Vehicle Industry Current Status of Supply and Demand Electric vehicle (EV) is an automobile industry that has seen a massive development in the past few years because of the development of technology, state incentives and environmental regulation . The dem and EVs has risen significantly in the recent years because people are now more focused on protecting the environment and due to growing cost of fuel (Timilsina et al., 2025) . The s upply has been low due to high production costs, unavailability of some important materials such as lithium and cobalt and disruptions of supply chains (Yuan et al., 2021) . On the hand, the demand is growing, but supply is not keeping up with this pressure, which puts an upward pressure on prices. Factor Causing a Shift in Supply Technological innovation is one of the strong reasons that have driven a shift in supply curve of EVs. New technological innovations in battery and automation have enhanced efficiency of production and reduced the cost (Timilsina et al., 2025) . These changes have resulted in a shift in the curve of supply to the right because producers can now produce a high number of vehicles using a lower cost per unit (Yuan et al., 2021) . The government policies that favor green technology like subsidies to EV manufacturers have also played a part in this favorable supply change. Factor Causing a Shift in Demand One of the major aspects that have led to a shift in the demand curve of EVs is the environmental consciousness and a shifting consumer preference. The demand has shifted to the right as more people realize the environmental benefits of driving electric cars, indicating that more people are needed at every price point (Akinsooto et al., 2025) . Also, due to increased fuel 5 costs and state subsidies given to those who purchase electric vehicles, EVs start to be more appealing than conventional gas -powered vehicles (Yuan et al., 2021) . 6 References Akinsooto, O., Ogunnowo, E. O., & Ezeanochie, C. C. (2025). The future of electric vehicles: Technological innovations and market trends. Engineering and Technology Journal , 10 (4), 4392 -4405. McEachern, W. A. (2019). Macro ECON6: Principles of macroeconomics (6th ed.). Cengage Learning. https://online.vitalsource.com/#/books/9798214347905 Timilsina, R. R., Zhang, J., Rahut, D. B., Patradool, K., & Sonobe, T. (2025). Global drive toward net -zero emissions and sustainability via electric vehicles: an integrative critical review. Energy, Ecology and Environment , 10 (2), 125 -144. Yetter, E. A. (2023). Considerations for the textbook selection process in Principles of Microeconomics. In Teaching Principles of Microeconomics (pp. 25 -43). Edward Elgar Publishing. Yuan, M., Thellufsen, J. Z., Lund, H., & Liang, Y. (2021). The electrification of transportation in energy transition. Energy , 236 , 121564.