The government considers providing a per-unit subsidy to sellers of solar panel.
i. Discuss the main objective of this government policy.
ii. With the aid of a well-labeled demand-and-supply diagram, show the above impacts on the price buyers pays, the price sellers receive, the equilibrium quantity of the solar panel market. Briefly explain your answers.
iii. Will the total expenditure of buyers on solar panel rise or fall with the subsidy? Explain your answer.