Economics JAMB

If commodity X is a by-product of commodity Y; this implies that both commodities are?

A. in competitive supply
B. in composite supply
C. jointly supplied
D. in excess supply

Correct Answer:

Option B – in composite supply

Explanation

When the process of making one thing results in a second product as well, that second thing is called a byproduct. Example The production of computer systems requires software to function, hence would be jointly supplied.

Composite Supply is one where 2 or more goods or services are supplied together.

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