Let D = demand, S = supply, P = equilibrium price, Q = equilibrium quantity. What happens in the market for solar panels if the government offers tax breaks to encourage manufacturers to produce more solar panels?
A) S increases, D no change, P decreases, Q increases.
B) D increases, S no change, P and Q increase.
C) D and S increase, P and Q decrease.
D) D no change, S increases, P decreases, Q decreases.
A
Economics
You might also like to view...
In the Baumol-Tobin analysis of the demand for money, either an increase in ________ or an increase in ________ increases money demand
A) income; interest rates B) brokerage fees; interest rates C) interest rates; the price level D) brokerage fees; income
Economics
A stock mutual fund's primary advantage is to allow
A) investors to diversify away systematic risk. B) investors to diversify away all risk. C) investors to diversify away idiosyncratic risk. D) the rich to avoid taxes.
Economics