Question

“Narrow petrol-diesel price gap and higher price of die
sel car alter buyer’s preferences.”

Explain this statement linking it to the concept of elasticity of demand.

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Answer 1

Answer:

The following news was printed in the Economic Times:"Narrow petrol - diesel price gap and higher price of diesel cars alter buyer preference."Explain ...

Buyer's preferences between diesel and petrol cars is significantly influenced by the relative prices of these fuels. In India, people have high preference ...