Wednesday, October 03, 2007

Unit 1: The price of petrol: Increase in taxation

This BBC clip explains that the price of fuel is going up

http://news.bbc.co.uk/player/nol/newsid_7020000/newsid_7021300/7021381.stm?bw=bb&mp=rm&asb=1&news=1

a) Using a S&D diagram, explain why the price of fuel will rise
b) Using a S&D diagram, explain why the price of goods in the shops will rise
c) To what extent can car travel and public transport be regarded as substitutes?

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