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JAMB Economics 1988 Question 15

Question 15

Theory of Demand

A commodity is said to have a derived demand when the commodity

  1. A.and another have joint demand
  2. B.is demanded because of what it can help to produce
  3. C.is demanded for different purposes
  4. D.has inelastic demand.
Show the answer and explanation

Answer: B (is demanded because of what it can help to produce)

Explanation

Derived demand is demand for something because of what it helps to produce, as with factors of production.