Question

The above image shows a type of demand which has many uses. Identify the type of demand.

Options

• Composite

• Complementary

• Joint

• Substitute

Answer 1

Composite

Explanation:

Composite demand refers to the demand for a single commodity that can be used for a variety of purposes. Milk is a perfect example because it can be consumed directly or used to make curd, cheese, butter, sweets, and tea; a rise in demand for any of these items has a direct impact on the overall market demand for milk.