With the surge in electric vehicle (EV) adoption globally, many analysts are interested in understanding the relationship between the elasticity of demand and total revenue in this market. In response to growing concerns about climate change and air pollution, the government of Wakanda announced a substantial increase in subsidies for electric vehicles, coupled with a significant tax hike on gasoline and diesel vehicles. As a result, the demand for electric vehicles skyrocketed, while the demand for traditional internal combustion engine vehicles declined.

• Analyze how the elasticity of demand for electric vehicles might change in response to the government's policy changes. Why is this the case?
• Discuss the potential impact of these changes in demand elasticity on the total revenue earned by electric vehicle manufacturers.