The diagram below shows the market demand and supply curves for lithium-ion battery packs. An increase in global demand shifts the demand curve from D1 D_1\,D1 to D2D_2D2.
From the above diagram, it can be concluded that when the price rises from $120 to $150:
the price elasticity of supply of lithium-ion battery packs is +1.25.
lithium-ion battery packs are an inferior good.
the price elasticity of supply of lithium-ion battery packs is +0.8.
there will be excess supply of lithium-ion battery packs at $150.
