Interrelated markets Flashcards
1
Q
What is Joint demand?
A
When an increase in a price of a good goes up the demand for its compliment decrease.
2
Q
What is Competitive demand?
A
When an increase in a price of a good goes up the demand for its substitute will increase.
3
Q
What is Derived demand?
A
When the demand for a good or service increases so will the input for the good or service, for example, when the demand for cars goes up so will the demand for aluminium as it is used to make cars.
4
Q
What is Composite demand?
A
When two goods require the same input, the increase in demand for one of the goods will lead to a decrease in supply for the other good, as more input is used on one of the goods.
5
Q
What is Joint supply?
A
When the production of one good will affect the supply of its byproducts
