Question 26
Theory of DemandA situation in which an increase in the demand for certain goods leads to a fall in the demand for other goods is known as
- A.joint supply
- B.derived demand
- C.competitive demand
- D.competitive supply
- E.composite demand.
Show the answer and explanation
Answer: C (competitive demand)
Explanation
Substitutes are in competitive demand: buying more of one means buying less of the other.