Demand for Petrol & Automobiles

Presented by:Smriti Aggarwal (2014282)

Tamanna (2014295)
Unnati Gupta (2014312)
Vaibhav Gupta (2014313)
Varinder Singh Bhullar (2014317)

Complementary Goods

Increase in the price of petrol results in decrease in

demand of automobiles.
Elasticity is negative.

Demand for petrol

Number of Years Allowed to Pass Following a Price or
Income Change
Elasticity

10

20

Price

-0.11

-0.22

-0.32

-0.49

-0.82

-1.17

Income

0.07

0.13

0.20

0.32

0.54

0.78

Demand for Automobiles

Number of Years Allowed to Pass Following a Price or
Income Change
Elasticity

10

20

Price

-1.20

-0.93

-0.75

-0.55

-0.42

-0.40

Income

3.00

2.33

1.88

1.38

1.02

1.00

Alternative scenario
Increase

in price of LPG lead to Decrease in

demand for Gas cylinders.

Managerial Implication

Technological innovation to develop fuel efficient and

hybrid cars.
Reducing the price of cars till price of petrol stabilize.