Fres Vegetable

Question no 4 : When the vegetables atomic number 18 in the pacify the prices goes up customers decreasing fill for vegetable decreasing more(prenominal) competitor enter and the securities industry more provider atomic number 18 avalible . There be so legion(predicate) different types of competition between different suppliers. sore competitors expect to establish in that respect new business thats wherefore they want and they deal got with any price. gas roll It government agency that accelerator pedal decreasing 0.4 percentage and t increase by 0.4 percent. If the prices atomic number 18 increasing by 0.4 percent the require would decrease by 0.4 percen.t Demand for petrol is quite an inelastic. If you endorse a car, there are not many alternatives to purchase petrol. This is wherefore the increased price of petrol has failed to snub make for petrol significantly. (there is an estimated PED of petrol of -0.1 in the short term) However, if you are a car owner you dont in virtue mind who you buy petrol from. Esso petrol is not really any different to petrol from Tesco. Therefore, consumers are sensitive to changes in prices for an individual petrol place. If there are many petrol send outs close by the petrol companies will construe that there demand is elastic. Increasing price could lead to a loss of market share.

However, if you are the only petrol station in a rural area or if you are a petrol station on a motorway, you check a lot more market advocator. A motorist is not going to exit the motorway just to head off paying motorway prices. Therefore, in these locations the pe trol stations corroborate more market power! , consumers less choice, demand inelastic; and this is why petrol is more expensive. And then it says \use common determinant of both\, whatever that means ?? Maybe it means that the higher(prenominal) the market share the lower the PED. the less market power a petrol station has the more elastic demand is   New cars: The demand for the new car decreasing in 1.2%. it means the prices are higher and increasing the prices for 1.2% A leaf guest has provided...If you want to get a full essay, order it on our website: OrderEssay.net

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