Question on: JAMB Economics - 2024
When an increase in the price of a commodity leads to a fall in the demand for another, the demand for the two commodities are said to be
A
competitive
B
joint
C
composite
D
derived
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Correct Option: A
When the price of one commodity increases and the demand for another falls, it indicates that the two goods are substitutes or competitive. Consumers switch to the relatively cheaper alternative when the price of one increases.
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