Question

The development of solar panels for home installation has improved due to technological advances and subsidies. These factors shift the supply curve to the _____ and result in the equilibrium price of solar panel installations to _____.
right; fall


left; rise


left; fall


right; rise

Answer 1

Answer:

The correct answer is

right; fall

Explanation:

When there are changes in the costs of the factors of production, it can result in the supply curve shifting to the right or to the left. That means the quantity supplied at the given price has either increased or decreased, hence the supply curve shows the relationship between quantity supplied at a given price

Factors that can cause a shift in supply curve include, prices of imput materials, increased competition, technological advancement, social or natural factors and general expectations.

When the supply curve shifts right, that means increased in supply or more units are available at a given price, hence prices fall. However if the supply curve shifts left that means less goods are available at a given market price, hence prices of the commodities will rise