Q.N 1 Consider the demand curve for petrol. What effect will the following situations have on the demand curve for petrol?

a) An increase in the price of cars.

b) An increase in the proportion of the population owning cars

c) A rise in transport costs of shipping oil.

d) A growing concern for environmental issues by the general public.

e) An increase in price on diesel.

Requirement:

a) To state answer as either one of the following:

-rightward shift,

-leftward shift,

-movement up long,

-movement down along

b) Explanations thereof for all parts.

Q.N.2 Consider the supply curve for organically grown wheat. What effect will the following situations have on the supply curve for organically grown wheat?

a) A reduction in the cost of organic fertilizer's.

b) An increase in the demand for organic bread.

c) The belief that the price of organic wheat will rise substantially in the future.

d) A drought.

e) A government subsidy granted to farmers using organic methods.

Requirement:

a) To state answer as either one of the following:

-rightward shift,

-leftward shift,

-movement up long,

-movement down along

b) Explanations thereof for all parts.