What are the different types of demand, and provide examples for each?

Question 17: The type of demand existing when two or more commodities are demanded together because they help each other is called complementary demand.

• C) Complementary demand

Question 18: Joint demand refers to complementary goods, which are demanded together.

• D) Bread and butter

Question 19: When a commodity is demanded at the expense of another, it means they are alternatives. These are called substitutes.

• B) Substitutes

Question 20: Derived demand occurs when a good or service is demanded because it is needed for the production of another good or service. Factors of production like land, labour, and capital have derived demand.

• C) Land, labour and capital

Question 21: Inelastic demand means that the quantity demanded does not change significantly with a change in price. Necessities like salt typically have inelastic demand because people will buy them regardless of price changes.

• C) Salt

Question 22: If the quantity demanded of a commodity remains the same regardless of its price, the demand is perfectly inelastic.

• C) Perfect inelastic

Question 23: For perfectly inelastic demand, the Price Elasticity of Demand (PED) is equal to 0, because there is no change in quantity demanded even with a change in price.

$$\text{PED} = \frac{\% \Delta \text{Quantity Demanded}}{\% \Delta \text{Price}} = \frac{0}{\% \Delta \text{Price}} = 0$$

• A) PED = 0

Question 24: Minimum prices (price floors) are set above the equilibrium price, typically to ensure that producers receive a higher price for their goods. Therefore, producers stand to gain most.

• A) Producers