Interrelated markets ( complements, substitutes , Derived + Composite demand and Joint supply )

Question 1

What are complement goods ?

Answer 1

Goods bought together

As the price of printers increase , the price for ink also increases

Question 2

What are substitute goods ?

Answer 2

Competition goods ( coke + pepsi )

As the price of coke increases , the demand for pepsi also increases

Question 3

What is derived demand ?

Answer 3

Input demand - example the demand for aluminium will affect the demand for cars

As the demand for cars increases , the demand for aluminium also increases

Question 4

What is composite demand ?

Answer 4

Two goods that require the same resources of input to produce ( Milk and cheese )

If there is an increase of production of one good there will be a decrease in supply of the other

Question 5

What is joint supply ?

Answer 5

Increase of production in one good will increase the supply of another ( Honey and beeswax )

When more honey is in supply , there will be an increase in the supply of beeswax as it is a by product