Lithium-ion battery packs serve as the primary power source for all electric bicycles (e-bikes). Manufacturers of e-bikes are facing substantial increases in the cost of battery packs as they compete for limited mineral supplies, including lithium and cobalt. The cost of standard battery packs has jumped from 60tomorethan 60 to more than \,60tomorethan185 per unit. The retail prices of e-bikes have risen for a range of reasons, including these escalating components costs and the growing popularity of zero-emission urban commuting.
With reference to Extract A, explain the likely reasons for the change in the price of electric bicycles. Include a supply and demand diagram in your answer.
