Question 1 (12 marks) This question is based on the following cartoon: Maximum word count: 100 words Recartoons que Just why is petrol so expensive? SUPPLY DEMAND (i) What word/words will an economist use to describe the market condition depicted in the cartoon (ii) Draw a diagram of the market for petrol that illustrates the market condition depicted in the cartoon. (ii) Explain the adjustment process to the new equilibrium position in the market for petrol.

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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Question 1 (12 marks)
This question is based on the following cartoon:
Maximum word count: 100 words
Recartoons que
Just why is
petrol so
expensive?
SUPPLY
DEMAND
(i)
What word/words will an economist use to describe the market condition depicted in the cartoon
(ii) Draw a diagram of the market for petrol that illustrates the market condition depicted in the
cartoon.
(ii)
Explain the adjustment process to the new equilibrium position in the market for petrol.
Transcribed Image Text:Question 1 (12 marks) This question is based on the following cartoon: Maximum word count: 100 words Recartoons que Just why is petrol so expensive? SUPPLY DEMAND (i) What word/words will an economist use to describe the market condition depicted in the cartoon (ii) Draw a diagram of the market for petrol that illustrates the market condition depicted in the cartoon. (ii) Explain the adjustment process to the new equilibrium position in the market for petrol.
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