ECO402 - Microeconomics 1st GDB last date 10-04-2012
Posted: Mon Apr 09, 2012 7:10 pm
Petrol and Compressed Natural Gas (CNG) are the essential components of every economy. Pakistan’s economy being already under pressure in past few years; has been again hit by a sharp increase in fuel prices. The current ruling government increased the price of CNG from Rs. 35/Kg to Rs.89/kg and price of petrol from Rs.56/litre to Rs.103/litre in the span of last four years. By virtue of this decision, economy of Pakistan is in jeopardy. As CNG is the most consumed fuel, its rising prices have badly affected a huge number of consumers throughout the country. Keeping in view the above stated situation, discuss how this price hike will affect the consumers’ demand for CNG. Being a student of economics, suggest the measures to overcome this situation?