Interrelated markets

Question 1

What is joint demand ?

Answer 1

If the price of one good increases , demand for a product which is associated with the good falls ,

E.g £ Printers increase , Demand for ink Falls

Question 2

What is competitive demand ( substitute demand ) ?

Answer 2

When the price of one good increases , the demand for a competitors similar product increases

Coke price increases , demand for Pepsi increases

Question 3

What is derived demand ( input demand ) ?

Answer 3

For example , the demand and price for cars and aluminium

When demand for cars increase , demand for aluminium increases

Question 4

What is composite demand ?

Answer 4

When 2 goods require the same input to make them

If the production of one good increases it causes supply for good B to fall as they have less resources

Question 5

What is joint supply ?

Answer 5

For example , honey and beeswax ( byproducts of goods )

When the demand for honey increases , the supply for beeswax increases