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JAMB Economics 1999 Question 11

Question 11

Theory of Demand

The graphs above illustrate

Diagram for this question
  1. A.joint demand
  2. B.derived demand
  3. C.composite demand
  4. D.competitive demand
Show the answer and explanation

Answer: D (competitive demand)

Explanation

Supply of X rises and its price falls, and at the same time demand for Y falls. People switch from Y to the cheaper X, so X and Y are substitutes: competitive demand.