AS Paper 1, June 2017Introduction to Markets and Market Failure

AS Paper 1, June 2017, Q3(c)

Annotate the diagram below to show the effect of removing the solar panel installation subsidy on the equilibrium price and quantity.

Short answerAnnotate2 marks

Context

In 2015 the UK government cut subsidies for the installation of solar energy panels.

Original diagram required. See the original question paper for the diagram.

Specification topics

Indirect taxes and subsidies

Revision notes

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