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) D no change, S increases, P decreases, Q decreases
C) S increases, D no change, P decreases, Q increases
D) D and S increase, P and Q decrease
C
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The equilibrium level of real GDP is $1,000 . the target level of real GDP is $1,250, and the marginal propensity to consume (MPC) is 0.60 . The target can be reached if government spending is:
a. increased by $60 billion. b. increased by $100 billion. c. increased by $250 billion. d. held constant.
One reason that we might observe a rise in net capital outflow could be interest rates in the:
A. rest of the world are declining, relative to the U.S. B. U.S. are declining, relative to the rest of the world. C. U.S. and the world are all declining. D. U.S. and the world are all increasing.
Which of the following countries is not a member of the European Union?
a. Switzerland b. Portugal c. Sweden d. Ireland
Unemployment compensation payments:
a. fall during a recession and thus increase the severity of the recession. b. rise during a recession and thus reduce the severity of the recession. c. rise during a recession and thus increase the severity of the recession. d. rise during inflationary episodes and thus reduce the severity of the inflation.