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QUESTION

Explain, with the use of demand and supply diagrams, the effect of the following events on the market for solar panels:

Explain, with the use of demand and supply diagrams, the effect of the following events on the market for solar panels:  

(a)  The price of solar panels has fallen to below the market equilibrium price.

(b)  The price of electricity for an average household has increased by 50 percent.

(c)  New technology has increased the productivity of solar panel producers.

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ANSWER

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*** ** *** ***** ** solar ****** has ****** ***** *** market equilibrium ***** **** *** quantity ******** ** **** will *********

(b) If *** ***** ** electricity for ** ******* household *** increased by ** ******* **** *** ******** ******** **** ********

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