Supply and demand revision - petrol and cars as complements
Friday, May 07, 2010
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This article claims that a 3% reduction of cars on British Road has been caused by the recent surge in petrol prices. Whether petrol prices are completely to blame could be debated but it is a good example of how a change in the price of a complement can have an effect on demand for another product. Pupils could explain this situation with a supply and demand diagram.
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