Economics JAMB

The two commodities can be classified as?

When commodity X sold for N25 per unit, 50 units of commodity Y were purchased. With an increase in the price of commodity X to N50 per unit, the demand for commodity Y fell to 20 units.

A. Substitutes
B. durable and non-durable
C. intermediate and final
D. complements

Correct Answer:

Option D – complements

Explanation

A complementary goods is a goods whose use is related to the use of associated or paired goods. An increase in the price of one will also affect the demand of the other good.

Example; computers need software to function. An increase in the price of a computer system will affect the demand of software

Sunday

Share
Published by
Sunday
Tags: economics

Recent Posts

Categories of People an Offer Can Be Made To and Classifications of Contracts

100 Level Department of Business Administration exam questions and detailed answers. Download the answers in document…

2 days ago

BAM 134 Theory Question: Factors Determining Span of Control in Organizations

100 Level Department of Business Administration exam questions and detailed answers. Download the answers in document…

2 days ago

BAM 134 Theory Question: The Importance and Elements of Delegation in Organizations

100 Level Department of Business Administration exam questions and detailed answers. Download the answers in document…

2 days ago

BAM 134 Theory Question: Recruitment, Selection, and Training Procedures in Organizations

100 Level Department of Business Administration exam questions and detailed answers. Download the answers in document…

2 days ago

BAM 134 Theory Question: Short Notes on Key Management Theories

100 Level Department of Business Administration exam questions and detailed answers. Download the answers in document…

2 days ago

BAM 134 Theory Questions: Effective Communication in Organizations: Characteristics and Consequences of Failure

100 Level Department of Business Administration exam questions and detailed answers. Download the answers in document…

2 days ago