Question: Consider a situation where the following two events occur simultaneously for home solar panel companies: ( 1 ) increased consumer interest in renewable energy boosts

Consider a situation where the following two events occur simultaneously for home solar panel companies:

(1)

increased consumer interest in renewable energy boosts demand for solar panel installations, and

(2)

new regulations impose higher costs on solar panel manufacturers due to stricter safety and quality standards. Which of the following best describes the combined impact of these events?

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