Suppose war broke out in the Middle East and gasoline and diesel fuel prices began rising. Jeepney drivers and bus owners feared future oil shortages if war cut off the flow of oil, and they rushed to fill up their fuel tanks. In this case, as the price fuel increased, jeepney drivers and bus owners bought more, not less. Is this an exception to the law of demand? Use the terminology of the demand and supply model to explain your answer.
1
Expert's answer
2017-06-26T11:26:07-0400
Described rise in fuel demand was short-term. However, as pre-purchased fuel will be consumed soon, drivers will need to buy other portions. And in this case, according to dependences between demand and supply, petrol sales are expected to decline. Therefore, primary rise in fuel sales with a rising price can be explained as an exception to the law of demand.
Numbers and figures are an essential part of our world, necessary for almost everything we do every day. As important…
APPROVED BY CLIENTS
Finding a professional expert in "partial differential equations" in the advanced level is difficult.
You can find this expert in "Assignmentexpert.com" with confidence.
Exceptional experts! I appreciate your help. God bless you!
Comments
Leave a comment