Given the market for petrol in the UK illustrate the impact on the equilibrium price and quantity of the following:  i) A fall in the incomes of UK consumers. ii) A rise in the price of new cars in the UK. iii) A nationwide fall in bus fares.

Managerial Economics: A Problem Solving Approach
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ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter8: Understanding Markets And Industry Changes
Section: Chapter Questions
Problem 8.1IP
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Given the market for petrol in the UK illustrate the impact on the equilibrium price and quantity of the following: 

  1. i) A fall in the incomes of UK consumers.
  2. ii) A rise in the price of new cars in the UK.
  3. iii) A nationwide fall in bus fares.
  4. v) A maximum price for petrol set by government. 
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