
How does deflation differs from declining

Explanation of Solution
In spite of inflation increasing more prices, the price of solar power is declining. Also, in contrast to fossil fuels, the cost of generating electricity from solar energy is driven by the infrastructure costs instead of the cost of the natural resources. Therefore, the costs and prices are more stable, particularly for large-scale electricity generation.
Historically, solar technologies have had high upfront infrastructure costs but low operating costs.
It is expected that within next two decades, the cost of solar technologies will be lower than the costs of conventional fossil fuel electricity technologies. These lower electricity prices can decrease inflation and contribute to increase economic activity and growth.
Deflation is decrease in the prices of goods and services thus leading to an increase in the
Conclusion:
So, above is the difference between deflation and declining price of solar technologies.
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Chapter 14 Solutions
Engineering Economic Analysis
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