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THEORY OF SUPPLY
CONTENT
- Types of Supply
- Change in Supply and Change in Quantity Supplied
Types of Supply
- Joint or complementary supply
- Composite supply
- Competitive supply
A. Joint or complementary supply
If two or more commodities are produced and supplied from one source, it is called joint or complementary supply. Increase in the production, demand and supply of one will definitely bring about increase in the production and supply of the other commodities that are produced from the same source.
B. Composite supply
If a particular commodity can serve two or more purposes, it is said to be in composite supply. The supply of palm oil for the production of soap will greatly affect the production of pomade and the use of the same palm oil for cooking of food.
C. Competitive supply
Supply is said to be competitive when many commodities are supplied for the satisfaction of a particular want. For example meat and fish, butter and margarine etc.
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Toyyib Ibrahim
Halima Ahmadu
Maryam