Microeconomic Analysis Essay Example | Topics and Well Written Essays - 250 words

Microeconomic Analysis - Essay ExampleThis leads to creation of knowingness of the product and thus an increase in the demand.The cost of other substitutes electricity is the major substitute to solar panels (Denholm 2007). The high cost of electricity as compared to solar panels is pulling away many individuals to consumer the solar panels. amid 2006 and 2011, Europe represented more than 70 percent of global solar installations. In 2008 and 2010, the region do up roughly 85 percent of installations, the supply of solar panels therefore is a major fixings in determining whether to venture into the contract business (Denholm 2007). Supply in the number of commodities the suppler is go forthing to share at a given period of time. With the government intervention in the supply of the commodities the supplies have a ready marketplace to supply to. This therefore enhances the demand to supply the commodity. The willingness of individual households and businesses to install solar pan els is a major boost to the willingness of the suppler to produce the goods. Then levels of inventory have remained low in the recent quondam(prenominal) and therefore the venture is a great opportunity for Cindy.The region has expressed a huge market for solar panels with the government subsidy and the high cost of substitutes then the business is most likely to be a profitable venture for Cindy (Denholm 2007). I recommend her to venture into contract installation of solar panels and will definitely get the return on