Our Topic• Global Warming

• Penguins & Polar Bears• North Pole & South Pole

• Kyoto Protocol • Water

• Climate Change

Coordinating By.

S.M. AHSAN HABIBKAZI MD. TANVIR

SAMIUL ISLAM

We are thankful to.

MS. REZINA NAZNEEN RIMI

(Our Lecturer of Eng 102)

GLOBAL WARMING GLOBAL WARMING

Pump price for diesel fuel (US dollar per liter) in Bangladesh by Year

Percentage usage of diesel in Bangladesh

48

29

13

7 3

% Usage

Agriculture Sector

Railway Sector

Transportation Sector

Other Energy Sector

Others

Elasticity of demand for diesel in Elasticity of demand for diesel in BangladeshBangladesh

According to the all those sectors Diesel are more inelastic good in Bangladesh.

Bangladesh is a agricultural based country and our Agricultural dependent on diesel.

Our railway sector is dependent on Diesel.Some of the transportation is also runs on Diesel.Power engines like generator also runs on diesel.

Price

A E

B F

Demand

C D Quantity

An inelastic demand shows that a big change in price results to a smaller change in quantity demanded. So for a high increase in price quantity demanded will fall in a small range. This is cause there are no alternative goods for diesel, industries will need diesel to run their machines.

Factors that determines diesel’s Elasticity

Necessity or a luxuryAvailability of a substituteTime (in a short or a long run)Percentage of the total budget

What is Cross Elasticity

Cross elasticity of demand or cross-price elasticity of demand measures the responsiveness of the demand for a good to a change in the price of another good.

Formula for Cross Elasticity

For substitute if the price of A increases then the demand for B increases.(+ve)

For complement if the price of A decreases then the demand for B increases.(-ve)

Comment on Diesel’s Cross Elasticity

If the price of CNG goes up which is an substitute for diesel then the demand for diesel will also increase.

There are no complements for diesel because the cars that runs on diesel can not run on fuel.

Thank You

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