Econ 545 Project 1 Essay

3017 WordsApr 13, 201513 Pages
Kimberlin L. McLaughlin Business Economics- ECON 545 Professor Mohand Khoukhi January 24, 2015 Table of Contents Preface…………………………………………………………………………………………………….. 3 Introduction……………………………………………………………………………………………….. 3 Demand Determinants…………………………………………………………………………………….. 4 Change In Demand…………………………………………………………………………………………7 Change In Quantity Demand………………………………………………………………………………..8 Solar Panel Price Determinants……………………………………………………………………………..9 Price Elasticity of Demand for Solar Panels………………………………………………………………...9 Supply Determinants………………………………………………………………………………………..11 Change In Supply…………………………………………………………………………………………...12 Expenses for opening a Solar Panel Installation Business………………………………………………….13 Market Structure…………………………………………………………………………………………… 14 Price Elasticity of Supply…………………………………………………………………………………...14 Conclusion and Recommendation…………………………………………………………………………..15 Reference……………………………………………………………………………………………………16 Preface This project was done as part of the coursework for the college course Business Economics 545 at Keller Graduate School of Management. I will be applying Economics principles to establish whether going into the business of Solar Panel installation will be profitable. This research project was written after completing Weeks one and two of this course, which covered several Economics principles including Supply and Demand. Introduction Renewable energy sources such as Solar power have become an increasingly popular energy resource over the years thanks to decreasing prices and increased awareness via reduced production costs, green energy advocates, government incentives and panel manufacturers’ marketing efforts. Firms in this industry install solar panels as part of general residential and commercial contracting services. These firms are contracted either by a homeowner, a solar panel manufacturer or by
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