Economics 2281 · O Level · Demand

Demand — practice question

Supermarkets provide petrol (gas) at sites outside their stores. They cut the petrol price to a level lower than that of other suppliers in order to draw in more customers, who then buy more items in the store when they purchase more petrol. If this plan succeeded, how would it be shown 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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