The price of petrol increases by 20% and remains at the new higher level. Which of the following statements is likely to be true? The price elasticity of demand will be higher a few years after the price change a The quantity of petrol supplied will decrease The price elasticity of demand for petrol will not be affected by the change in the price of petrol over the long run d. Demand for petrol will increase after people adjust to the new higher price The price elasticity of demand will be lower a few vears after the price change

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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The price of petrol increases by 20% and remains
at the new higher level. Which of the following
statements is likely to be true?
The price elasticity of demand will be
higher a few years after the price
change
a
The quantity of petrol supplied will
decrease
The price elasticity of demand for petrol
will not be affected by the change in the
price of petrol over the long run
d
Demand for petrol will increase after
people adjust to the new higher price
The price elasticity of demand will be
lower a few years after the price change
Transcribed Image Text:The price of petrol increases by 20% and remains at the new higher level. Which of the following statements is likely to be true? The price elasticity of demand will be higher a few years after the price change a The quantity of petrol supplied will decrease The price elasticity of demand for petrol will not be affected by the change in the price of petrol over the long run d Demand for petrol will increase after people adjust to the new higher price The price elasticity of demand will be lower a few years after the price change
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