Assume that the market for petrol is perfectly competitive.When one additional seller (petrol station)enters the market,

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In a perfectly competitive market, the price is determined by the intersection of the supply and demand curves. When a new seller enters the market, the total supply of petrol increases, which may temporarily lower the price of petrol as the market adjusts to the new equilibrium. However, in the long run, the price will return to the original equilibrium price because there is no monopoly power and no barriers to entry or exit. Therefore, the price of petrol is left unaffected in the long run.

Assume That the Market for Petrol Is Perfectly Competitive