If the government offers a tax deduction to companies producing solar panels, what will happen in the market for solar panels?

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04-09-2017
Business

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If the government offers a tax deduction to companies producing solar panels, what will happen in the market for solar panels?

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andriansp andriansp · Answer 1 · 2017-09-11T12:35:25+02:00

The answer to this question is The supply curve will shift to the right, increasing supply. When the government offer tax deduction for the solar panels, The amount of cost that needed to produce that product will decrease. This means that by using the same amount of capital, now the company able to produce more quantity of products, which will lead to the right shifting of the supply curve and increased supply.

calderonalbert871 calderonalbert871 · Answer 2 · 2021-05-26T17:51:29+02:00

calderonalbert871 calderonalbert871

26-05-2021

Answer:

Explanation:

The supply curve will shift to the right, increasing supply. When the government offer tax deduction for the solar panels, The amount of cost that needed to produce that product will decrease. This means that by using the same amount of capital, now the company able to produce more quantity of products, which will lead to the right shifting of the supply curve and increased.

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