1.3.6 The interrelationship between markets

Question 1

interrelationship between markets

Answer 1

Changes in a particular market are likely to affect other
markets.

Question 2

joint demand

Answer 2

= goods that tend to be demanded together
* aka complimentary goods
* e.g. cars and fuel
* opposite effect to goods that are substitues or in competing demand

Question 3

joint supply

Answer 3

= when production of one good leads
e.g. beef and leather

Question 4

composite demand

Answer 4

= when a ood is demanded for more than one distinct use
* increase in D for one, reduces supply avalible for other uses

Question 5

derived demand

Answer 5

= when a particular ood or factor of production is necessary for provision of another good or service.
* e.g. increased D for healthcare leads to increase in D for doctors and nurses.