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The price elasticity of demand for petrol is primarily influenced by the availability of substitutes, consumer necessity, and the proportion of income spent on petrol. When there are few substitutes available, demand tends to be inelastic, as consumers have limited options. Additionally, since petrol is often considered a necessity for commuting and transportation, demand remains relatively stable despite price changes. Finally, if petrol prices constitute a larger portion of consumers' budgets, demand may become more elastic as individuals seek alternatives or reduce usage.
What else can I help you with?
Are two goods complements if the cross-elasticity coefficient is negative?
Cross Elasticity Coefficient is defined as when the price of a particular commodity rises how is the demand of another commodity changing. If the goods are complements like say for example petrol and petrol driven cars, if there is a price hike in petrol then demand for petrol cars would fall. Hence a negative cross elasticity of coefficient. On the other hand the demand for deisel cars would rise (given the deisel prices are constant) because they serve as substitutes, and will have a positive cross elasticity.
Petrol is a complementary product for car.How can increase in income will affect the demand for petrol if you know that a car is a normal good?
i dont knowhgfdgfhjjk
Why are the prices of petrol and diesel going up?
demand of petrol are going up year by year and petrol is nonrenewable source of energy
What will happen to demand for a commodity if the price of its complementary falls?
Complement goods are those goods which uses collectively or side by side e.g petrol and cars. If the demand of one good changes then demand of other good move in the same direction. If the price of product complementary falls then the demand of complementary product increases according to the demand law which in turn increase the demand of product. Suppose the prices of petrol falls which will increase the demand of petrol which in turn in increase the demand of cars.
What factors affecting the demand of automobiles?
Complementary goods are consumed with other goods and the prices for these goods can affect demand for automobiles. These factors can include petrol prices, tyre prices or vehicle registration costs. In general, if any of these increase, their demand will decrease, along with demand for automobiles.Supplimentary goods are consumed instead of other goods, in other words, they are alternatives to a certain good. In this case, they could include bicycles, motorcycles, footpaths and public transport. If any of these goods increase in price, then automobiles will become more in demand due to being a cheaper alternative, whereas if the price of the goods decrease, demand for automobiles will likely decrease.
Are two goods complements if the cross-elasticity coefficient is negative?
Cross Elasticity Coefficient is defined as when the price of a particular commodity rises how is the demand of another commodity changing. If the goods are complements like say for example petrol and petrol driven cars, if there is a price hike in petrol then demand for petrol cars would fall. Hence a negative cross elasticity of coefficient. On the other hand the demand for deisel cars would rise (given the deisel prices are constant) because they serve as substitutes, and will have a positive cross elasticity.
Petrol is a complementary product for car.How can increase in income will affect the demand for petrol if you know that a car is a normal good?
i dont knowhgfdgfhjjk
Why the demand for vehicles is very high as the petrol rises?
The only demand that will become high when petrol prices rise is the demand for fuel-efficient cars.
What are the factor affecting demand for petrol?
The demand for petrol is influenced by several factors, including price changes, consumer preferences, and economic conditions. Higher petrol prices often lead to reduced demand as consumers seek alternatives or reduce travel. Additionally, factors such as the availability of public transportation, the rise of electric vehicles, and seasonal variations (like summer travel) can also significantly impact demand. Lastly, income levels and overall economic growth play a crucial role, as increased wealth typically leads to higher fuel consumption.
What are causes for petrol rise?
The rise in petrol prices can be attributed to several factors, including fluctuations in crude oil prices, which are influenced by global supply and demand dynamics, geopolitical tensions, and production cuts by major oil-producing countries. Additionally, changes in refining capacity, transportation costs, and local taxation can also impact petrol prices. Seasonal demand variations, such as increased travel during holidays, can further exacerbate price increases. Lastly, currency exchange rates can affect the cost of importing crude oil, leading to changes in local petrol prices.
Why are the prices of petrol and diesel going up?
demand of petrol are going up year by year and petrol is nonrenewable source of energy
Is petrol expensive?
Because the Dwarfes demand it so
What control the petrol price?
Supply, demand & competition.
What will happen to demand for a commodity if the price of its complementary falls?
Complement goods are those goods which uses collectively or side by side e.g petrol and cars. If the demand of one good changes then demand of other good move in the same direction. If the price of product complementary falls then the demand of complementary product increases according to the demand law which in turn increase the demand of product. Suppose the prices of petrol falls which will increase the demand of petrol which in turn in increase the demand of cars.
What factors affecting the demand of automobiles?
Complementary goods are consumed with other goods and the prices for these goods can affect demand for automobiles. These factors can include petrol prices, tyre prices or vehicle registration costs. In general, if any of these increase, their demand will decrease, along with demand for automobiles.Supplimentary goods are consumed instead of other goods, in other words, they are alternatives to a certain good. In this case, they could include bicycles, motorcycles, footpaths and public transport. If any of these goods increase in price, then automobiles will become more in demand due to being a cheaper alternative, whereas if the price of the goods decrease, demand for automobiles will likely decrease.
How can oil company solve the problem of the demand of diesel and petrol?
Produce more petrol than diesel. :P
What is current petrol price?
I don't have access to real-time data, including current petrol prices. Petrol prices can vary significantly by location and are influenced by factors such as global oil prices, local taxes, and supply and demand. For the most accurate and up-to-date information, it's best to check a reliable local fuel price website or app.
