AS Paper 1, June 2017Introduction to Markets and Market Failure
AS Paper 1, June 2017, Q3(b)
The most likely effect of cutting subsidies for the installation of solar panels is to:
Multiple choice1 mark
Context
In 2015 the UK government cut subsidies for the installation of solar energy panels.
Aincrease producer surplus
Bdecrease the provision of public goods
Cdecrease consumer surplus
Dincrease government expenditure