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Explanation of the market adjustment process

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Reference no: EM131651664

Using demand and supply graphs illustrate and explain the effect of the following events on the market for solar panels (assume ceteris paribus). In your answer, include an explanation of the market adjustment process.

(a) The price of solar panels is above the market equilibrium price.

(b) The price of electricity for an average household has decreased by 50 percent.

(c) The number of solar panel producers have increased by 50 percent.

Reference no: EM131651664

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