Economics JAMB

The effects on the demand for product A caused by a change in the price of product B is Called _________?

A. Joint demand
B. cross-elasticity of demand
C. elasticity of supply
D. competitive demand

Correct Answer:

Option A – Joint demand

Explanation

Joint demand is when the demand for one product is directly and positively related to market demand for a related good or service. Example computer system and software. You need a software for a computer to function.

If there is change in the price of a computer system, it will affect the demand for software.

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