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Question: 98-unleaded and 95-unleaded petrol are substitute goods, and it is known that 98-unleaded petrol has an estimated price elasticity of demand (PED) of 0.2.

Using the demand and supply model and concept of PED, explain the impact of a 10% increase in the price of 98-unleaded petrol on the demand for 95-unleaded petrol, ceteris paribus.(Hint: Examine the PED of 0.2 closely)

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