Question

1. electric cars: the u.s. government promises a $2 billion subsidy on gms electric cars

supply or demand increase or decrease
factor:
price: quantity

Explanation:

Step1: Analyze Supply/Demand

A government subsidy to producers (GM) affects supply. Subsidies reduce production costs, so producers are willing to supply more. So it's Supply.

Step2: Determine Increase/Decrease

Since subsidy lowers cost, GM will supply more electric cars. So Supply increases.

Step3: Identify Factor

The factor is "Government Subsidies" (a supply - side factor as it impacts production costs for suppliers).

Step4: Analyze Price and Quantity

In the supply - demand model, when supply increases (right - shift of supply curve), equilibrium price decreases and equilibrium quantity increases. So Price: Decrease; Quantity: Increase.

Answer:

Supply or Demand: Supply
Increase or Decrease: Increase
Factor: Government Subsidies
Price: Decrease
Quantity: Increase