The economist paul samuelson analyzed a scenario in which r& d production suffers from foreign competition, thus lowering its price. samuelson notes that foreign competition in r& d will generally the terms of trade and national welfare if the nation exports r& d.

By 2020, automobile market analysts expect that the demand for electric autos will increase as buyers become more familiar with the technology. however, the costs of producing electric autos may increase because of higher costs for inputs (e. g., rare earth elements), or they may decrease as the manufacturers learn better assembly methods (i. e., learning by doing). what is the expected impact of these changes on the equilibrium price and quantity for electric autos?