Advertisements
Advertisements
Questions
Distinguish between derived demand and composite demand.
Distinguish between derived demand and composite demand using suitable examples.
Distinguish Between
Advertisements
Solution
| Sr. No | Derived demand | Composite demand |
| 1 | Whenever several items are required to make a particular commodity, the demand for various commodities is termed as the derived demand. | A commodity can be used for several purposes and its demand is directly linked to its various uses. Such a demand is known as composite demand. |
| 2 | For example, the demand of building is a direct demand and demands for cement, bricks, sand, timber, etc., are called as derived demands. | For example, milk is used for making tea, coffee, butter, cheese, curd, sweets and for direct consumption. |
shaalaa.com
Is there an error in this question or solution?
APPEARS IN
RELATED QUESTIONS
A perfectly inelastic demand curve is parallel to 'Y' axis.
Define or explain the following concepts (Any THREE):
Individual demand
Distinguish between Joint demand and Composite demand.
Define or explain the following concept:
Increase in demand
Demand for milk is an example of composite demand.
Identity the pair of goods which are substitutes of each other:
Define joint demand.
An increase in the price of electricity will cause the demand for electric appliances to ______.
How does substitute goods’ demand react when the price of one rises?
What is direct demand?
