Photovoltaic cells (solar panels)have been in use since the 1970s. Recently, new technology has been developed which some think will allow regular windows to be replaced with solar panels. If this technology works as these people expect what will happen in the market for solar energy?
A)The new technology will cause the supply of solar energy to shift to the right and the price of solar energy to fall.
B)The new technology caused an increase in the supply of solar energy and an increase in the price of solar energy.
C)The new technology caused a decrease in the demand for solar energy.
D)The new technology caused an increase in the quantity of solar energy supplied.

Question

Quizplus · Accepted Answer

The new technology would increase the supply of solar energy as regular windows would now be able to produce it. With an increase in supply, the price would fall due to an increase in competition. Therefore, the answer is A.

Photovoltaic Cells (Solar Panels)have Been in Use Since the 1970s