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2. Suppose you are designing a study to help try to determine the likely costs of offering a 50% subsidy for large scale industrial solar

2. Suppose you are designing a study to help try to determine the likely costs of offering a 50% subsidy for large scale industrial solar panel roof installations.

  1. Make a simple demand and supply sketch that shows the likely costs to government at a given point in time.
  2. Make a list of at least 10 factors you would want to look at if you needed to make projections of the costs of such a subsidy in the future. In your list make note of why you think these things could matter. (Hint: what might affect the supply or demand for solar panels?)

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