BEO1105

Ceteris paribus, assume a global shortage of petrol has resulted in a doubling of petrol prices. Use graphical demand and supply analysis to support your explanation of the impact on equilibrium price and quantity in the market for: a) High fuel efficient petrol cars. b) Cars that use liquid gas (a substitute for petrol), where the price has not increased. 2 + 2 = 4 Marks NOTE:   In your answers explain the market equilibrium adjustment process Q

18 Other / Other Adler University / BEO1105 18 Nov 2020