[SubiculumCode]

This seems like a good test to determine the amount of competition in an economic sector. With suficient competition, the price will race to the slimmest sustainable profit margin. I mean you could try to raise your price up by $7500, but if your competitors don't, who will be getting sales?

In any case, EV prices have been dropping over recent years, and I haven't seen a $7500 bump in prices, just in more people being willing to go for a nicer vehicle instead.

[labcomputer]

That only works if the total capacity to produce products for that market is greater than the total demand for products in that market.

If people want 100 units of something, and 5 competing manufacturers can only produce 90 units total (and can only expand to, say, 110 units in a "short" timeframe), offering subsidies doesn't reduce the price.

If the government creates a demand shock, it doesn't matter how much competition exists in the market. They don't need to collude for prices to go up.

Look at what happened to toilet paper during Covid. Were Walmart, Amazon, McMaster and Grainger all colluding on toilet paper prices? Or was there a demand shock?

> In any case, EV prices have been dropping over recent years, and I haven't seen a $7500 bump in prices, just in more people being willing to go for a nicer vehicle instead.

All car prices have been dropping because we're getting past the Covid supply shocks. And if you go back farther, EV price drops are mostly the result of introducing new less-luxurious models (the current base Model 3 still costs more than the first RWD Model 3, and it has been decontented--missing features like parking sensors).