O Levels Economics (2281)•2281/12/M/J/24

Explanation
Promotional pricing shifts supply for petrol and demand for goods
Steps:
- Lower petrol price below competitors increases quantity supplied at that price, shifting petrol supply curve right.
- More customers buy petrol and enter store, boosting demand for groceries, shifting goods demand curve right.
- Petrol diagram shows lower equilibrium price and higher quantity.
- Goods diagram shows higher equilibrium price and quantity, increasing store revenue.
Why D is correct:
- Rightward supply shift for petrol follows supply-demand equilibrium, lowering price to attract buyers; rightward demand shift for goods reflects cross-product complementarity, raising sales.
Why the others are wrong:
- A: Left shifts reduce quantities for both, contradicting attraction strategy.
- B: Demand left for goods decreases store sales, opposite of success.
- C: Supply left raises petrol price, deterring customers.
Final answer: D
Topic: Demand
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