Categories: Economics WAEC

If an increase in the price of crude oil led to an increase in the prices of kerosene and grease; then kerosene and grease are in?

A. joint supply
B. competitive supply
C. market Supply
D. composite supply

Correct Answer:

Option A = joint supply

Explanation

Joint supply occurs when a product or the process of producing a product can yield two or more outputs. For instance, cows can be used for both milk or beef, If the supply of cows increases, it will also lead to an increase in the supply of dairy and beef products.

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