Monday, 25 April 2011

1st GDB of ECO401 solved


ECO401 GDB Idea solution by innocent prince

Consider the markets of motor vehicles and fuel oil. If price of motor vehicles rises, what will happen to the demand of fuel oil? In which direction the demand curve for fuel oil will shift with a rise in price of motor vehicles?

Answer:

Demand for fuel oil will fall and the demand curve will shift LEFTWARDS, showing that decrease.


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