Which type of demand occurs when an increase in the price of one product leads to an increase in the demand for another product?
AComplementary Demand
BDerived Demand
CJoint Demand
DSubstitute Demand
Explanation
* Substitute Demand exists between products that satisfy similar needs; if tea price rises, demand for coffee increases.
* Complementary Demand occurs when products are used together (e.g., printers and ink cartridges).
* Cross-price elasticity of demand measures the responsiveness of quantity demanded for one good relative to price changes in another.
Exam Relevance
- Topic: Microeconomics & Marketing
- Subtopic: Elasticity & Demand Dynamics

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