In economics, what term describes a product whose demand comes from several distinct uses?
Answer
Composite demand
Answer
Composite demand
Composite demand describes a product whose demand comes from several distinct uses.
A commodity has composite demand when buyers want it for more than one purpose. Electricity is a familiar example: households may use it for lighting, heating, cooling, computing, and appliances. A change in one use can affect total demand for the same commodity.
Composite demand matters because competing uses draw on a shared supply. If one use expands sharply, the resulting price increase can reduce consumption in other uses. Economists therefore examine not only total demand but also how demand is divided among applications.
Composite demand should not be confused with joint demand. Joint demand concerns goods wanted together, while composite demand concerns multiple uses of one good. The terms describe different relationships within demand analysis.
Source: Wikipedia · fact-checked Sept. 2026