Tesla has partnered with Panasonic to increase production of lithium-ion batteries and drivetrains for its mass-market Model 3 car in a massive factory in Nevada. The electric carmaker will spend $350 million and hire 500 workers.

The Model 3 will be priced at $35,000.

a. Explain how the price of an electric car influences the market for factory labor in Nevada.

b. Draw a graph to illustrate the effects of an increase in the demand for electric cars on the market for factory labor in Nevada.