Which of the following factors primarily drive the market for electric vehicles (EVs)?

• A. Consumer preferences for environmentally friendly transportation
• B. Increased production of coal-fired power plants
• C. Government restrictions on gasoline sales
• D. Decreased demand for public transportation

Answer: (A)

Verified step by step guidance

1. Step 1: Understand the concept of demand drivers in microeconomics, which are factors that influence consumers' willingness and ability to purchase a good or service.
2. Step 2: Identify the options given and analyze how each factor affects the demand for electric vehicles (EVs).
3. Step 3: Recognize that consumer preferences for environmentally friendly transportation increase the demand for EVs because consumers value cleaner alternatives to traditional vehicles.
4. Step 4: Evaluate other options: increased production of coal-fired power plants does not directly increase demand for EVs and may even reduce their appeal due to environmental concerns; government restrictions on gasoline sales could affect demand but are less direct than consumer preferences; decreased demand for public transportation might increase or decrease EV demand depending on context but is not the primary driver.
5. Step 5: Conclude that the primary driver among the options is consumer preferences for environmentally friendly transportation, as it directly influences the demand for EVs by shifting consumer tastes.