O Levels Economics (2281)•2281/12/O/N/18

Explanation
Seasonal Demand Shift for Petrol
Steps:
- Identify the cause: Holidays in August lead to more travel by car.
- Link to economics: Increased travel raises the quantity of petrol consumers want to buy at each price.
- Analyze demand curve: This represents a rightward shift, showing higher demand.
- Rule out supply factors: The change stems from consumer behavior, not production.
Why B is correct:
- A rightward demand curve shift means greater demand at every price, per the law of demand, due to seasonal travel needs.
Why the others are wrong:
- A: Leftward shift indicates decreased demand, opposite of sales increase.
- C: Refinery output affects supply, not the demand-driven sales rise.
- D: Hotel increases relate to travel services, not petrol demand directly.
Final answer: B
Topic: Demand
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