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WAEC Economics 2002 Question 22

Question 22

Theory of Demand

An increase in the demand for butter reduces the demand for margarine; this type of demand is called

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

Answer: A (competitive demand.)

Explanation

Butter and margarine are substitutes that compete for the same use, so their demand is competitive.