Economics 0455 · IGCSE · Demand

Demand — practice question

Some supermarkets sell petrol (gas) from pumps outside their shops. To draw in extra shoppers, they lower petrol prices below those of other suppliers, hoping that customers will also purchase more goods inside the store. If this strategy succeeded, how could it be represented on demand and supply diagrams?

  • Ashift of the demand curve to the left; shift of the supply curve to the left
  • Bshift of the demand curve to the right; shift of the demand curve to the left
  • Cshift of the supply curve to the left; shift of the supply curve to the right
  • Dshift of the supply curve to the right; shift of the demand curve to the right

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