Interrelated Markets

Question 1

What is joint demand

Answer 1

Goods that are usually bought together

Question 2

Example of joint demand

Answer 2

Razors and blades

Question 3

If the price for razors increased what would happen to the demand of blades

Answer 3

Shift to the left

Question 4

If the price for razors decreased what would happen to the demand of blades

Answer 4

Shift rightwards

Question 5

What are substitute goods

Answer 5

Rival goods
Very similar
In competition

Question 6

Example of substitute goods

Answer 6

Coke and Pepsi

Question 7

If the price for coke increased what would happen to the demand of Pepsi

Answer 7

Shift rightwards

Question 8

If the price for coke decreased what would happen to the demand of Pepsi

Answer 8

Shift leftwards

Question 9

What is derived demand

Answer 9

Demand for a good or service comes from the demand from something else

Question 10

Example of derived demand

Answer 10

Labour derived from the demand for goods and services

Question 11

If demand for cars increased what would happen to the demand of aluminium

Answer 11

Shift rightwards