instance, would equilibrium market price increase or decrease? Consider substitutes such as plug-in hybrids, the Nissan Leaf and Chevy Volt, and complements such as gasoline and lithium ion laptop computer batteries. Qd= f(P, Ps, Pc, Y, A, Ac, N, Cp, Pe, Ta, T/S …) Equation 2.1 is the demand function. If the quantity demanded is the Toyota Prius, the P is the price of the car and as the price rises we would expect a decline in the quantity sold. Ps is the price of substitutes and as the price of the Chevy…
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