During the Obama administration, significant federal funding—about $2.4 billion—was allocated to support the development and manufacturing of low-cost batteries for electric vehicles, including grants to U.S. manufacturers to produce efficient batteries and components

. This funding effectively lowered production costs, shifting the supply curve for zero-emissions electric vehicles to the right (an increase in supply). At the same time, American households increasingly prioritized minimizing their environmental impact, which raised consumer demand for zero-emissions electric vehicles. This increased demand shifts the demand curve to the right as well

. Therefore, in the market for zero-emissions electric vehicles with an upward-sloping supply curve and a downward-sloping demand curve:

• The supply curve shifts right due to subsidies and cost reductions from federal funding.
• The demand curve shifts right due to higher consumer preference for environmentally friendly vehicles.

As a result:

• The equilibrium quantity of zero-emissions electric vehicles increases.
• The change in equilibrium price is ambiguous because the increase in supply tends to lower prices, while the increase in demand tends to raise prices. The net effect depends on the relative magnitude of the shifts

In summary:

• Both supply and demand curves shift right.
• Equilibrium quantity increases.
• Equilibrium price change is ambiguous.

This reflects how federal subsidies and changing consumer preferences jointly influenced the electric vehicle market during the Obama administration.