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Economics

Question:

(a) With the help of diagrams, explain how the price and quantity demanded or supplied of fuel will change under the different scenarios:

(i) Consumers expect a future rise in prices of fuel;

(ii) Social and Political instability in an oil producing country; and

(iii) A new substitute to fuel - i.e. liquefied petroleum gas is introduced in the market.

(b) Using the concept of elasticity, distinguish between inferior, normal and luxury goods.

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M9586830

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