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Answer :
The statement "The government lowers taxes on companies that produce solar panels in order to encourage and support businesses that are involved in renewable energy" suggests that the determinant of supply for solar panels is subsidies and taxes.
What is the explanation for the above response?
The statement "The government lowers taxes on companies that produce solar panels in order to encourage and support businesses that are involved in renewable energy" suggests that the determinant of supply for solar panels is subsidies and taxes.
Therefore, the supply curve will shift to the right, leading to an increase in the quantity supplied of solar panels, which can help meet the growing demand for renewable energy sources and support the US economy's transition towards sustainability.
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