Interrelated Markets

Question 1

Define Derived

Answer 1

Demand for a G/S that results from the demand for a different G/S

E.g

• Oil and Gasoline/Petroleum

Question 1

Define Subsitutes

Answer 1

G/S that can be used in place of another G/S to meet a need/want

E.g

• Butter and Margarine

-Mcdonalds and Burger King

Question 2

Define Complements

Answer 2

Products that are bought and used together

E.g

-Burger and Bun

-Mobile Phone and Sim Card

Question 3

Define Joint supply

Answer 3

Situation where increase/decrease in supply of one good leads to a increase/decrease of another by-product

E.g

• Milk and Butter

Question 4

Define Composite Demand

Answer 4

When G/S has more than one use

E.g

• Milk
• Oil