A regional government introduces a subsidy for residential solar panel installations to encourage the transition to renewable energy.
One microeconomic effect of this subsidy is to increase:
government tax revenues
consumer surplus
the price paid by consumers
public-good characteristics of solar energy
8 exam-style questions on Edexcel A A Level Economics 1.2.8 Consumer and producer surplus. Each one has a worked solution and a mark scheme showing where the marks go.