The effects on the demand for product A caused by a change in the price of product B is called____________

  • A Joint demand
  • B cross-elasticity of demand
  • C elasticity of supply
  • D competitive demand
jamb 2018economics

The correct answer is A. Joint demand

Joint demand is when the demand for one product is directly and positively related to market demand for a related good or service.  Example computer system and software. You need a software for a computer to function.

If there is change in the price of a computer system, it will affect the demand for software.

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