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Suppose the price of petrol has risen substantially since several months ago, and has stayed at a high level since then. What would happen to
Suppose the price of petrol has risen substantially since several months ago, and has stayed at a high level since then. What would happen to the price of petrol cars in the short run? If, for some other reason, the price of steel has also risen during the same period, what would you expect to happen to the market for petrol cars? Illustrate and explain your answer using a demand-supply diagram
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