Government puts a ban on diesel vehicles over 2000cc.' How will this news affect the demand for petrol and CNG vehicles?
Dear Student
When government puts a ban on diesel vehicle over 2000cc than it will increase the demand of petrol and CNG vehicle as diesel vehicle and petrol/CNG vehicle are substitute to each other.and in substitute goods when demand of one good decreases than its substitute demand will increase.
Regards
When government puts a ban on diesel vehicle over 2000cc than it will increase the demand of petrol and CNG vehicle as diesel vehicle and petrol/CNG vehicle are substitute to each other.and in substitute goods when demand of one good decreases than its substitute demand will increase.
Regards