If commodity X is a by-product of commodity Y , this implies that both commodities are
in competitive supply
in composite supply
jointly supplied
in excess supply
Explanation
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Discussions (8)
It is jointly supplied because X and Y are offered jointly or concurrently or at the same time. So the supply of X leads to the supply of Y
By product refers to when the production of one commodity inevitably leads to the production of another, hence they are jointly produced and supplied like saw dust from lumbering, they are produced from the same manufacturing process.
The answer is not B because composite supply refers to when the supply of a commodity can be used to serve two or more purposes e.g egg could be used to make cake or sold directly in the market. Composite supply does not entail that while producing egg, cake is made. It is more concrened about the effect of increase or decrease in supply of egg for another purpose.
Joint supply is the correct answer because it refers to when commodities are produced and supplied from the same source e.g Kerosene and petrol are in joint supply because they are gotten from the refining of crude oil, therefore, they are by-products of petroleum.
Joint supply is concerned about the by products which are kerosene and petrol while composite supply is concerned about the egg and it's supply effect okkkkaaayyy?
Wrong by product dey mean in d quest is substitute I mean similar product xo d ans is joint not composite...... composite mean when commodity is required to serve 2 or more purpose....myschool pls go through economics textbook 2 confirm pls
The selected answer is wrong:
The correct answer is Composite Supply. Why? The by-product of any commodity is what can be gotten from a single commodity e.g Flour can be used to make different products like cake,bread,etc.
REF: Essential Economics-Theory of demand
