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Answer to Question #180753 in Microeconomics for Lucy
Question #180753
How can the impact of an increase in the price of petrol on the demand curve for petrol be illustrated?
The demand curve for petrol will shift to the left.
The demand curve for petrol will shift to the right.
The demand curve for petrol will remain unchanged.
The demand curve will become more elastic
Expert's answer
The demand curve of Petrol will remain unchanged.
If there is an increase in price of petrol, there would be a movement along the demand curve not shift along the demand curve.
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