Compare Joint demand and competitive demand

Joint demand occurs when consumers require a combination of two or more products for maximum satisfaction. These are complementary goods, meaning the use of one good enhances the use of another. For example, the demand for smartphones is directly related to the demand for smartphone cases.

In contrast, competitive demand arises when consumers can derive equal satisfaction from substitute products. These are substitute goods, meaning that one good can be used in place of another. For instance, the demand for mobile services from O2 competes with the demand for services from Vodafone.