Consider the  market  for  solar  power.  Assume the market  is perfectly  competitive and  initially  in long-run  equilibrium;  solar  power  sells for $.25 per kwh (kilowatt hour, a unit of power).  Next, to  encourage  conservation,  Congress taxes  all  forms  of  energy  EXCEPT solar  power,  causing  an  increase  in  the  demand  for  solar  Show what happens to the market and the firm in the short run; indicate clearly what happens to price, quantity, and profit.

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