If the supply of solar panels increases, 1. the price and quantity of solar panels increases. 2. the demand for solar panels increases. 3. the price of solar panels decreases and the quantity increases. 4. the quantity demanded of solar panels decreases. 5. None of the above.

3. the price of solar panels decreases and the quantity increases.

Explanation:

An increase in supplies results in reduced prices.  As per the law of supply and demand, an increase in supply while holding the demand contact results in a decrease in price.  Increase supply causes downward movements along the supply curve, pushing the prices lower. There will be many solar panels available in the market competing with for few buyers.

An increase in supplies means an increase in the quantities available in the markets. Buyers will have a large selection of solar panels to choose from.

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