Using the analysis done in Q2, we are now ready to discuss the Australian petrol market. For the purposes of this questi

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Using the analysis done in Q2, we are now ready to discuss the
Australian petrol market. For the purposes of this question, we
will assume that the domestic petrol market is competitive. Use the
demand and supply model to explain how the price of petrol is
determined in the domestic market. Briefly discuss the factors that
influence the supply of petrol (supply shifters) and the factors
that influence the demand for petrol (demand shifters). Which of
these factors do you think are responsible for the recent price
dynamics in this market? Illustrate your answer on a graph,
including all relevant supply and/or demand shifts and the
corresponding changes in the equilibrium price and quantity.