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Study notes

Composite Demand

  • Levels: AS, A Level
  • Exam boards: AQA, Edexcel, OCR, IB

Composite demand happens when goods or services have more than one use so that an increase in the demand for one product leads to a fall in supply of the other. E.g. milk which can be used for cheese, yoghurts, cream, butter and other products. If more milk is used for manufacturing cheese, ceteris paribus there is less available for butter

Difference between composite demand and derived demand - revision video
Composite demand

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