New technology which would allow ordinary windows to be replaced with solar cells would have what impact on the market for solar electricity, all else equal?
A)A shift of the supply curve to the right and an increase in price.
B)A shift in the demand curve to the right and a reduction in price.
C)A shift in the supply curve to the left and an increase in price.
D)A shift in the demand curve to the left and reduction in price.

Question

Quizplus · Accepted Answer

This technology would increase the availability of solar electricity by turning ordinary windows into sources of solar power, effectively increasing the supply of solar electricity. An increase in supply, all else being equal, shifts the supply curve to the right, which typically leads to a lower price, not an increase as stated. However, the correct choice regarding the direction of the supply curve shift is A, despite the error in the price effect description.

New Technology Which Would Allow Ordinary Windows to Be Replaced