TYPES OF SUPPLY
Composite supply: Composite supply occurs when a certain commodity can serve two or more purposes. In other words, the supply of the commodity for one purpose will greatly affect the supply of the same commodity for another purpose.
For instance, crude oil. The supply of crude oil (petroleum) for the production of petrol will greatly affect the production of kerosene and other uses of petroleum.
If more petroleum is needed for petrol production, the price of petroleum will rise. People who require petroleum for other purposes will be faced with a high price.
Joint or complementary supply: Joint or complementary supply occurs when two or more commodities are produced and supplied from one source.
An increase in the production and supply of one will automatically bring increase in the production and supply of commodities that are produced from source.
For example, an increase in pr and supply of petrol from petroleum lead to an increase in and supply of kerosene Petrol and kerosene are obtained from source which is petroleum.
- Competitive supply: Competitive supply occurs when many supplied for the satisfaction of a particular In other words, it is the supply of two commodities that serve as substitutes alternatives to one another, e.g. meat Ariel and Elephant detergents, butter and margarine, Close-Up and Maclean too