1.14. Suppose that the upply curve for solar panel 1s as shown in the diagram:

0 20 40 60 80 100 Quantity The government decides that it would like to increase the quantity of solar panels in use, so it offer a 20 sub idy per panel to producers. Draw the new supply curve. As a hint, remember our analy i of how a tax affects upply, as shown in Figure 3.12, and bear in mind that a subsidy can be thought of as a

"negative tax."