A city has imposed a binding ceiling price on electricity. Solar electricity technology (on the roof of all houses paid for by the government) then reduces the demand of household electricity from external suppliers such that there is no shortage or surplus of electricity in the city. a/ Draw a set of supply and demand curves to show electricity supply and demand curves prior to the introduction of technology. Then draw a PPC to show what has happened with the introduction of solar electricity technology (on the roof of all houses).

Answer rating: 100% (QA)

Answer The market of electricity is in equilibrium where the ... View the full answer