Economics Demand and Supply Quiz

What is joint demand?

• When a good or service is demanded for multiple purposes

• When the demand for a good is derived from the demand for another related good

• When an increase in the demand for one good leads to a decrease in the demand for another good

• When two or more goods are demanded together to fulfill a specific need or want

Answer explanation

Joint demand refers to when two or more goods are demanded together to fulfill a specific need or want, making the correct answer choice 'When two or more goods are demanded together to fulfill a specific need or want'.

What is competitive supply?

• When the demand for a good is derived from the demand for another related good

• When two or more goods require the same resources or inputs to be produced

• When the supply of a single good or resource comes from multiple sources

• When the production of one good results in the production of another good

Answer explanation

Competitive supply refers to when two or more goods require the same resources or inputs to be produced, making them compete for those resources.

What is derived demand?

• When two or more goods are demanded together to fulfill a specific need or want

• When the demand for a good is derived from the demand for another related good

• When a good or service is demanded for multiple purposes

• When the production of one good results in the production of another good

Answer explanation

Derived demand is when the demand for a good is derived from the demand for another related good, showing the interdependence between the two goods.

What is composite supply?

• When the supply of a single good or resource comes from multiple sources

• When the production of one good results in the production of another good

• When two or more goods require the same resources or inputs to be produced

• When two or more goods are demanded together to fulfill a specific need or want

Answer explanation

Composite supply refers to when the supply of a single good or resource comes from multiple sources, making it a composite of different inputs.

What is competitive demand?

• When an increase in the demand for one good leads to a decrease in the demand for another good

• When two or more goods are demanded together to fulfill a specific need or want

• When the demand for a good is derived from the demand for another related good

• When a good or service is demanded for multiple purposes

Answer explanation

Competitive demand occurs when an increase in the demand for one good leads to a decrease in the demand for another good, highlighting the correct choice.

A surge in demand for palm oil leads to an increase in the supply of palm kernel shells. This scenario best illustrates:

• Competitive supply

• Joint supply

• Composite supply

• None of the above

Answer explanation

The scenario of an increase in the supply of palm kernel shells due to a surge in palm oil demand illustrates joint supply, where two goods are produced together as a result of a single production process.

A bakery experiences an increase in demand for flour, yeast, and sugar as it expands its production of pastries and bread. This situation illustrates:

• Joint demand

• Competitive demand

• d) Composite demand

• Derived demand

Answer explanation

The bakery's increased demand for flour, yeast, and sugar is due to the expansion of production, illustrating derived demand where the demand for one product is dependent on another.

The demand for torch and batteries is an example of

• competitive demand

• composite demand

• joint demand

• derived demand

Answer explanation

The demand for torch and batteries is an example of joint demand because they are used together in a complementary way, where the demand for one product affects the demand for the other.

The demand for factors of production is an example of?

• joint demand

• • competitive demand

• • composite demand

• • derived demand

Answer explanation

The demand for factors of production is an example of derived demand because it is derived from the demand for the goods and services they help produce.

Domino Pizza, Debonaire Pizza and Dodo Pizza are all located on Main street. This scenario best illustrates:

• joint demand

• composite supply

• competitive demand

• joint supply

Answer explanation

The scenario of Domino Pizza, Debonaire Pizza, and Dodo Pizza all located on Main street best illustrates composite supply, where there are multiple supply sources for pizza.