Business, Legal & Accounting Glossary
Joint supply can be referred to as any product that can produce more than one thing at a time. One simple example can be a cow, which not only produces milk, but several goods can be made from its skin. If in an economy such thing happens that farmers start increasing their number of cows, in response to an increase in demand of milk then it is found that in the long-run supply of meat also increases, which further leads to decrease in beef prices. This type of supply is known as joint supply. Thus, here not the only supply of milk increases but the supply of beef also increases.
Joint supply is a term, which is used in economics for all those products that have dual usage. Sometimes it can happen that a product is having dual usage. If the supply of that product is increased then the supply of dual service of that product also increases. This concept is very well applied in the case of animals that not only produce milk but also their flesh is used in several work.
One of the major uses of joint supply can be for dropping price or expense. Joint supply can also be used for charity purpose. Sometimes there can be a dual increase in supply, which can lead to dual profit; this profit can be used in several charitable programs.
It is seen that in an economy the more joint supply products are available more can be prospects and economy survives well. Dual usage resources are limited but if these resources become unlimited then there can be a lot of progress in any economy.
In joint supply, price discrimination is not that easy as in this case supply is to be determined on the basis of both types of supply. Determination of such type of supply curve is tough and again here demand of which service is to be considered also remains a vital question. [
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This glossary post was last updated: 21st April, 2020 | 193 Views.