Different Types Of Demand

Question 1

What is derived demand

Answer 1

The demand for a particular product or resource that is driven by the demand for another product or resource

Question 2

Give an example of derived demand

Answer 2

Demand for steel increases due to demand for buildings increasing

Question 3

Define joint demand

Answer 3

When demand for one good increases as it complements another good

Question 4

Give an example of joint demand

Answer 4

Demand for potatoes increasing for chips due to increase in demand of fish

Question 5

Define composite demand

Answer 5

Where goods have more than one use therefore an increase in demand for one product leads to a fall in the supply of another

Question 6

Give an example of composite demand

Answer 6

Milk for chocolate so supply for cheese falls