Jamb Economics Tutorials S02

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Welcome to the second series of this Jamb economics tutorial. In this Jamb economics tutorial, we will dealing thoroughly with THE KIND AND THE DETERMINANT OF DEMAND.

This jamb economics tutorial will be very helpful as it will expose you on the concept of THE KIND AND THE DETERMINANT OF DEMAND.

Grab your writing material (Biro and jotter). Also, make sure you get a glass of chilled fruit drink or water to refresh yourself as we start up with this Jamb economics tutorial series on THE KIND AND THE DETERMINANT OF DEMAND

You might want to click here to see my write up on the theory of demand.

Jamb Economics Tutorial


Having explained the meaning of demand, we now step forward towards having to explore the types of demand we have. The types of demand are:

1.Derived demand

This refers to the demand for a product that arises due to the demand for other products or commodities. The demand for one commodity will necessitate the demand for another commodity. For example, the demand for petrol, Diesel, and other lubricant depends on the demand of vehicles.

Also, the demand for raw materials is also derived demand as it is dependent on the production of other products.

2.Complementary demand

This is also called joint demand, this demand occurs when two commodities that are related to each other are demanded at the same time. These two commodities are said to be complementary to each other as a change in the demand for one commodity will bring about a similar change in the demand for the other commodity. For examples, cars need gasoline or diesel fuel. An increase in the demand for automobiles leads to an increase in the demand for fuel. Other examples of complementary demand are: Bread and Butter, Tea and milk.

3.Competitive demand

This is the demand for product that is competing for sales. People can substitute one competing product for another. If the demand for one product increases, the demand for its competitor will decrease. Similarly, when two commodities are fairly close substitutes to each other, they are in competitive demand. In other words, they serve the same purpose or perform the same function. For example, Coke and Pepsi are competing soft drinks. if the price of Pepsi drops below that of coke, consumer demand for pepsi will increase while the demand for coke decreases. Examples of commodity that are close substitutes are Bornvita and Ovaltine, Malta Guinness and Maltina, Omo and elephant detergents, Butter and Margarine, e.t.c.

4.Composite demand

Demand is said to be composite when a commodity is required to serve two or more purposes. 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. For example, sugar is widely used in the home for beverages as well as in industries for making pastries and confectionery. Also, milk can be used for cheese, yoghurts, cream, butter and other products.

Jamb Economics Tutorial

The determinants of demand

The concepts of the determinant of demand are factors that cause fluctuations in the economic demand for a product or a service. These factors either make demand to shift to the right or to shift to the left. These determinants of demand include.

1.Normal goods

A normal good is any good for which demand increases when income increases, or it is one whose demand increases as people’s income or the economy rise. Therefore, normal goods is one concept that can determine demand, if the consumer income fall, there will be a fall in demand.

2.Change in preference

If there is a change in preference then there will be a change in demand. For example if I decide to change my preference of bournvita over Milo beverage then the demand for milo will increase while the demand for bournvita will drop.

3.Complementary Goods

When there is a decrease in the price of compliments, then the demand for its co-complement will increase. Complementary goods are goods you usually buy together, like bread and butter, tea and milk. If the price of one goes up, the demand for the other goods will fall.


When people expect that the value of something will rise, they demand more of it. For example, Housing prices rose but people bought more because they expected the price to continue to go up. Prices increased even more until the bubble burst.

5.Number of buyers in the market

The number of consumers affects overall, or “aggregate”, demand. As more buyers enter the market, demand rises. That’s true even if prices don’t change.


When the public’s desires, emotions, or preferences change in favour of a product, so does the quantity demanded. Likewise, when tastes go against it, that depresses the amount demanded. Brand advertising tries to increase the desire for Consumer goods.

7.Price of related goods or services

The price of complementary goods or services raises the cost of using the product you demand, so you will want less. For example, when petrol price increase, the demand for Hummer Jeep fell. Gas is a complementary good to Hummers.


An increase in population in an area will lead to high demand for commodities and vice versa.

9.Government policy

This is a tool in an economy which can either encourage or discourage the consumption of goods and services.


A good advertisement for commodity can lead to an increase in demand for it and vice versa.

Philip Obhenimen

Hello world, first I want to thank you for visiting my blog and hope you find the content useful. My name is JOHN PHILIP OBHENIMEN the CEO of poschools.com I am currently studying mechanical engineering in a reputable university. I am very passionate about educating young people on academics,career and skill acquisition. I pray that the Almighty God help assists me in accomplishing the above.

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