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    Question

    When to accomplish a particular necessity, the Demand of

    various goods is increased automatically into the market , it is known as ________________ .
    A Cross Demand Correct Answer Incorrect Answer
    B Derived Demand Correct Answer Incorrect Answer
    C Composite Demand Correct Answer Incorrect Answer
    D Joint Demand Correct Answer Incorrect Answer

    Solution

    Example of Derived demand, For building a house, the demand of Painter, labour, artisans, Bricks, Cements automatically increases. Cross Demand is the ratio of percentage change in quantity demanded of a product to percentage change in price of a related product. Composite demand happens when goods or services have more than one use so that an increase in the demand for one product leads to a fall in supply of the other. E.g. milk which can be used for cheese, yoghurts, cream, butter and other products . Joint demand occurs when demand for two goods is interdependent. For example, it is no good having a printer without the ink to go with it.

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