-The Above Figure Shows the Market for Petrol

question 153

Multiple Choice

-The above figure shows the market for petrol. When a cyclone destroys a major refinery that refines oil into petrol, the

• A)demand curve for petrol shifts from D1 to D2 and the supply curve of petrol shifts from S2 to S₁.
• B)demand curve for petrol does not shift, and the supply curve of petrol shifts from S1 to S2.
• C)demand curve for petrol does not shift, and the supply curve of petrol shifts from S2 to S1.
• D)demand curve for petrol shifts from D1 to D2 and the supply curve of petrol does not shift.

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Definitions:

Paid

The act of transferring money or compensation for services rendered or goods received.

Trade Discount

A reduction from the list price granted by a seller to a buyer in the commercial marketplace, often based on volume or trade status.

Net Price

The price of a good or service after deductions such as discounts, rebates, and allowances have been taken into account.

List Price

The manufacturer's suggested retail price (MSRP) or the price at which a product is intended to be sold before any discounts or promotions.