ELASTICITY OF DEMAND OF PETROL AND CNG
SIR FAISAL SULTAN QADRI
Syeda Tabinda Naz
We owe our profound thanks and deepest gratitude to ALMIGHTY ALLAH, most merciful, who blessed us with determination, strength, ability and divine help to complete this report.
This Report is on ELASTICITY OF DEMNAD OF PETROL. This report is a part of our course titled as Business economics conducted in Iqra University.
Then we would like to acknowledge our course instructor Mr. Faisal Sultan Qadri to give us an opportunity to work on this project, and allow us to make use of our analytical abilities. It was his guidance and never ending patience that lead us to complete this report.
Our special thanks to our beloved parents and friends without their support we would not be able to complete our assignment and their coordination has made us able to achieve the task in time.
High prices effect everyone everywhere, but not equally. Petroleum pricing is something that directly effects every one in society as it is also major source of power and fuel. DEMAND:
Demand is defined as the willingness and ability of a consumer to purchase a given product in a given frame of time.
DETERMINANTS IF DEMAND:
Overall demand can change, moving upward or downward, because of changes in: P = price of other goods (substitutes and complements)
I = income
N =no. of buyers
T =tastes and preferences
CHANGE IN INCOME:
With the rise in income of people they can increase the usage of product which will result in increased demand.
CHANGE IN PRICE:
Change in price will also result in demand curve of that product.
Here we will discus the effect of change in price of petrol on its demand of consumption.
CAR AND PETROL OR CAR AND CNG (Petrol Vs CNG):
The general trend is that when the price of the substitute...