When analyzing the effects of a sudden increase in demand for electric vehicles, it is important to consider how this change influences _____ in the market, including price and quantity supplied.

When there is a sudden increase in demand for electric vehicles, it impacts the market by affecting both the price and the quantity supplied. As more people want to buy electric vehicles, manufacturers see a chance to sell more, which may lead them to increase production. However, if the supply cannot keep up with the rising demand right away, prices may go up because people are willing to pay more to secure one. For example, if a popular electric car model suddenly becomes very desirable, its price might rise as buyers compete for limited cars available. This situation shows how demand influences both how much of a product is available and its cost in the market.