How petrol effect on car when price petrol increases ?
Answer:
When price increases consumer has to decide about quantities bought because of a limited budget. There´re two effects. The first one says that the consumer is poorer and he´ll take public transportation to save money. It´s a substitution effect. The second effect is related to his budget and it´s called Rental or Income Effect. If he keeps using petrol at the same rate, he will have to cut down expenses on other products.
Are you asking if you get a better product when the price increases? The answer is no. Isn't that lousy?
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