With the aim of improving air quality for its citizens, a government offers a subsidy to producers of cars powered by batteries charged from the electricity supply. How would this subsidy probably affect the price of electricity and the amount sold?
- Aprice of electricity: falls / sales of electricity: falls
- Bprice of electricity: falls / sales of electricity: rises
- Cprice of electricity: rises / sales of electricity: falls
- Dprice of electricity: rises / sales of electricity: rises