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) D increases, S no change, P and Q increase.
B) S increases, D no change, P decreases, Q increases.
C) D and S increase, P and Q decrease.
D) D no change, S increases, P decreases, Q decreases.

Answer: B

Economics

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Economist John Maynard Keynes noted one of the main contributors to the Great Depression in the 1930s was:

A. insufficient spending causing below natural rate output. B. poor infrastructure for manufacturing. C. a labor market that could not meet the demands of the market at the time. D. an insufficient agriculture sector, unable to produce enough food for the large US population.

Economics

The increase in the unemployment rate during a recession is associated with which type of unemployment?

A. Structural unemployment B. Cyclical unemployment C. Nominal unemployment D. Frictional unemployment

Economics