I see these as almost identical concepts but we are just looking at them from a different perspective (composite demand adds an extra step of why the supplier chooses to produce one good rather than the other). They both involve factors of production that can be used to create multiple goods. Composite demand is where different demand choices cause a reduction in supply of other goods. Competing supply is where supply choices cause a reduction in supply of other goods. I must admit I'm not all that familiar with competing supply as a concept so I may be wrong on this!
Thank you sir 😊 it's really useful for me and everyone....
what's the difference between competing supply and composite demand?
I see these as almost identical concepts but we are just looking at them from a different perspective (composite demand adds an extra step of why the supplier chooses to produce one good rather than the other). They both involve factors of production that can be used to create multiple goods. Composite demand is where different demand choices cause a reduction in supply of other goods. Competing supply is where supply choices cause a reduction in supply of other goods.
I must admit I'm not all that familiar with competing supply as a concept so I may be wrong on this!
@@EverythingEcon Oh okay I understand now, that seems right thank you