When an increase in the price of a commodity lead to a rise In the demand for the other, the demand for the two commodities are said to be

Source: JAMB · 2024

When an increase in the price of a commodity lead to a rise In the demand for the other, the demand for the two commodities are said to be

  1. competitive ✓
  2. composite
  3. derived
  4. joint
Explanation

Competitive demand means goods are substitutes. When one gets expensive, people buy the other instead.

Composite demand is when a good has multiple uses. Derived demand comes from demand for a final product.

Tea and coffee compete for the same customers. If coffee costs more, tea demand rises.

Was this explanation helpful?