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Wednesday, April 27, 2011

ECO401 GDB solution

Consider the markets of motor vehicles and fuel oil. If price of motor vehicles rises, what will happen to the demand of fuel oil? In which direction the demand curve for fuel oil will shift with a rise in price of motor vehicles?


Answer: Fuel Oil Demand will fall and its curve will shift to Left reflecting decrease.

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    Eco 401 gdb #2 solution
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