ECONOMICS
MARKETS AND PRICES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The demand for labour increases as the demand for the good which that labour produces increases
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the demand for petrol increases because car travel increases in popularity
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the demand for strawberries increases following a series of price reductions
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the demand for bricks increases for use in both house building and factory building
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Detailed explanation-1: -Composite demand Composite demand happens when there are multiple uses for a single product. For example, corn can be used as animal feed, ethanol and food in its whole form. The rise in demand for any of these products leads to a shortage in supply for the others. This shortage can lead to a rise in price.
Detailed explanation-2: -Therefore, demand of bricks for making house is a derived demand.
Detailed explanation-3: -The idea of a composite commodity is utilized in demand analysis as a simplifying instrument. A good example is Milk for cheese, yoghurts, cream, margarine, and other goods.
Detailed explanation-4: -composite demand. noun [ U ] us. the situation when a particular type of goods is used to produce more than one type of product: In the case of composite demand, if demand for one product that uses the commodity rises, the supply of other products using the commodity will fall.