The Government Offers Subsidies to Homeowners for the Purchase and Installation

The government offers subsidies to homeowners for the purchase and installation of solar energy generating equipment. Given that silicon (derived from silicate minerals) is the main input in the production of solar panels, how will the subsidy affect the market for silicon?

A) Demand will rise, leading to an increase in the equilibrium price and quantity.
B) Supply will rise, leading to an increase in the equilibrium quantity and decrease in price.
C) Demand will fall, leading to a decrease in the equilibrium price and quantity.
D) Supply will fall, leading to an increase in the equilibrium price and decrease in quantity.