Skip to content
MathsGenie logo
Open app

Course home

  1. A Level
  2. Economics AQA
  3. Question bank

1.3 Price determination in a competitive market

EasyMediumHard
123456789101112131415161718192021222324252627282930313233343536373839404142
Question 42

Figure 1 shows demand (DDD) and supply (SSS) in the market for residential solar panels. Demand is initially at D1 D_1\,D1​ and supply at S1S_1S1​.

Figure 1: Market for residential solar panels

Other things remaining the same, which one of the following combinations of events could have caused demand to shift from D1 D_1\,D1​ to D2 D_2\,D2​ and supply from S1 S_1\,S1​ to S2S_2S2​?

A reduction in the price of residential battery storage systems (a complement) and an increase in the wage rates of solar assembly technicians.

An increase in grid electricity tariffs and a technological breakthrough that lowers the manufacture cost of photovoltaic cells.

A rollback of government clean-energy grants for homeowners and a rise in the cost of imported raw silicon.

A fall in grid carbon taxes that lowers retail electricity prices and an improvement in assembly-line automation in solar factories.

1.3 Price determination in a competitive market Questions

  1. A Level
  2. /Economics
  3. /1.3 Price determination in a competitive market