Following a series of energy security reviews, the government of a coastal nation launches a fully-subsidized training scheme to transition offshore drilling engineers into wind-turbine technicians, whilst simultaneously halving the administrative licensing fees and approval times for new offshore wind developments.
Assuming all other things remain equal, which one of the following is most likely to be true as a result of these measures?
The market supply curve for offshore wind energy will shift to the right.
There will be a movement upwards and to the right along the existing supply curve for offshore wind energy.
Wind energy will become a non-rival and non-excludable public good due to state intervention.
The price elasticity of demand for renewable energy will immediately become perfectly inelastic.
256 exam-style questions on AQA A Level Economics 1.3 Price determination in a competitive market, covering 1.3.1 The determinants of the demand for goods and services, 1.3.2 Price, income and cross elasticities of demand, 1.3.3 The determinants of the supply of goods and services, 1.3.4 Price elasticity of supply, 1.3.5 The determination of equilibrium market prices, and 1.3.6 The interrelationship between markets. Each one has a worked solution and a mark scheme showing where the marks go.