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‘Mobile phone and laptop are examples of composite demand.’ Justify the statement with a suitable reason. - Economics

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Question

‘Mobile phone and laptop are examples of composite demand.’ Justify the statement with a suitable reason.

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Solution

Mobile phones and laptops can be considered examples of composite demand because each of them is demanded for multiple uses. They are used for communication, entertainment, education, and business purposes. Since a single good satisfies several needs at the same time, the demand for mobile phones and laptops is composite in nature.

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