"Discovery of natural gas in the international market leads to a cut in the petrol and diesel prices.”
Explain the economic theory to analyse the impact of the statement on the cost of production of
the transport firms in India. Also analyse its impact on the cost of transportation.
Answers
Answered by
0
Answer:
India meets its demand of petrol & Diesel largely through imports from other countries and accordingly, when it faces a cut in its price in international market it also affects the price in domestic market as well. Transport sector uses petrol & diesel as its major inputs. A cut in their prices is always expected to lower their cost of production and other things remains constant, it would lead to lower cost for the transportation of goods across different places.
" I HOPE THAT THIS WILL BE HELPFUL TO YOU "
Similar questions