Let D = demand, S = supply, P = equilibrium price, and Q = equilibrium quantity. What happens in the market for electric vehicles if the government offers incentives to manufacturers to produce more electric vehicles?

A) D increases, S no change, P and Q increase.
B) S increases, D no change, P decreases, Q increases.
C) D and S increase, P and Q decrease.
D) D no change, S increases, P decreases, Q decreases.


Answer: B

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