WAEC - Economics (2008 - No. 7)
If good P and Q are jointly demanded, an increase in the price of P will likely
leave the demand for Q constant but reduce the quantity demanded of P
reduce the quantity of P but increase the Price of Q
Increase the quantity supplied of Q
decrease the quantity demanded of Q
Penjelasan
Joint demand is when you need two goods because they work together. If two goods are in joint demand they will have a high and negative cross elasticity of demand. This means a rise in the price of one will lead to a decrease in the demand for the other. Therefore option D is correct. An increase in the price of P, will lead to a decrease in the quantity demanded of Q.