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Overall prices of the factors of electricity increase

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A market for electricity is in equilibrium in Bangladesh at a point where both supply and demand curves intersect each other. If the following events (price factors or non-price factors of demand or supply) take place into the market of electricity then how it will affect equilibrium point, equilibrium price and equilibrium quantity of electricity in Bangladesh.

(i) If proportion of general sales tax (GST) on electricity is increased by the Govt. of Bangladesh.

(ii) When the overall prices of the factors of electricity increase.

(iii) Govt. of Bangladesh opens up doors for Research and development for all the firms to produce cheap electricity in Bangladesh.

(iv) During the new fiscal year; Govt. of Bangladesh has decided to decrease the proportion of direct personal tax.

(v) Since; electricity has become an essential good, therefore, if income of the electricity users declines in Bangladesh.

(vi) Govt. of Bangladesh is unable to protect investor's life in the pandemic COVID - 19.

(vii) Govt. in Bangladesh has imposed ban on installation of solar panels.

(viii) Electricity tariffs are decreased by the government in Bangladesh

Use graphical representation for each case separately and label and interpret each diagram.

Reference no: EM132519296

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