When a change in the demand for commodity A leads to a change in demand for commodity B in the same direction, demand for A & B is ____________
A. competitive demand B. complementary demand C. composite demand D. independent demand
Correct Answer: B
Explanation
Complementary demand occurs when the demand for a particular product leads to the demand for a related but different product. It is also known as joint demand. For instance, the demand for computer systems would lead to a corresponding demand for software because computers cannot function without software. When there is a change in the prices of computers, it will also affect the prices of software.
