A sudden increase in consumer preferences for electric cars occurs simultaneously with a significant rise in production costs for manufacturers. How would you classify the resulting changes in market equilibrium for electric cars?

When consumer preferences for electric cars increase, more people want to buy them, which usually pushes the demand up. At the same time, if production costs rise, manufacturers might produce fewer cars because it becomes more expensive to make them. This situation creates two opposing forces: higher demand and lower supply. As a result, the market equilibrium, where supply meets demand, will shift. In this case, we can expect the price of electric cars to rise due to increased demand, while the quantity sold may decrease because manufacturers are making fewer cars.