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UI Post-UTME Economics 2022 (Model questions) Question 9

Question 9

Theory of Supply

When an increase in the price of steel causes an increase in the production of cars, then supply is

  1. A.complementary
  2. B.composite
  3. C.competitive
  4. D.derived
Show the answer and explanation

Answer: A (complementary)

Explanation

When producing more of one good goes together with producing more of another, supply is joint or complementary.