Economics · May / June 2024 · Paper 12 · Question 6

Supermarkets sell petrol (gas) outside their stores. They reduce the price of petrol below other suppliers to attract more customers to buy goods in the store when they buy more petrol. If this were successful, how might it be shown on demand and supply diagrams?

1. Ademand and supply diagram for petrol: shift of the demand curve to the left; demand and supply diagram for the store's goods: shift of the supply curve to the left
2. Bdemand and supply diagram for petrol: shift of the demand curve to the right; demand and supply diagram for the store's goods: shift of the demand curve to the left
3. Cdemand and supply diagram for petrol: shift of the supply curve to the left; demand and supply diagram for the store's goods: shift of the supply curve to the right
4. Ddemand and supply diagram for petrol: shift of the supply curve to the right; demand and supply diagram for the store's goods: shift of the demand curve to the right

As printed in the paper