INTERRELATED MKTS

Question 1

complements

Answer 1

goods in joint demand

Question 2

give example of complemets

Answer 2

printer /printer ink
coffee machine / capsules

Question 3

explain what happens when price of printer goes up in price

both to printer and printer ink

Answer 3

get contractin in demand in printer

shift demand left in printer ink at same price

cause drop in QD for both

Question 4

DRAW + EXPLAIN WHAT HAPPENS WHEN PRICE OF COFFEE MACHINE GOES DOWN

Answer 4

move along and get extension in demand
we see a shift in deamnd of capsules to teh right
increase in QD also for both

Question 5

what type of demand do substitutes represent / have

Answer 5

competitive demand

Question 6

examples of substitutes

Answer 6

coke pepsi
big mac whopper
iphone samsung

Question 7

explain + draw what happens if theres increase in price of coke

Answer 7

contraction in demadn, move up demand curve and reduction in quanitty demadned

Casues shift to right in demand of pepsi as more consumers willing and able to buy pepsi and increase in quantity demanded at same price

Question 8

DERIVED DEMAND

Answer 8

demand for g/s comes from demand of something else

Question 9

give example of input/derived demand

Answer 9

Aluminium and cars

Labour g/s

Holiday/bs work and airline travel

Question 10

if theres an increase in demand for cars explain what happens with alluminium + cars

Answer 10

Increase in demand for cars(shifts demand right) causes increase in demand for aluminium (shifts right ) as derived demand