In late 2021, a sudden surge in global demand for electric vehicles led to a significant increase in the market price of lithium-ion batteries. Despite these substantial price increases, the supply of lithium-ion batteries failed to keep pace with the growing demand.
Explain one reason why manufacturers of lithium-ion batteries might find it difficult to increase the quantity supplied in the short run.
13 exam-style questions on Edexcel A A Level Economics 1.2.4 Supply. Each one has a worked solution and a mark scheme showing where the marks go.