1.

Distinguish between Joint demand and Composite demand.

Answer»

Joint Demand: When several goods are demanded for one same purpose such demand is known as joint demand

e.g., If demand for furniture increases, the demand of wood, nails, etc. also increases.

Composite Demand: Demand for goods that have multiple uses is called composite demand.

e.g., Milk is used for making tea, coffee, butter, cheese, curd and sweets



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