Interrelationship Between Markets

Question 1

What is joint demand ?

Answer 1

The relationship between 2 goods that are compliments

Eg pencils and sharpeners

Question 2

Competitive demand

Answer 2

The relationship between 2 goods that are substitutes
Eg Pepsi and coke

Question 3

Derived demand

Answer 3

When a good is in demand as a result of the demand for something else
Usually because the first good can be used to produce the second good

Steal is used to make cars

Question 4

Composite demand

Answer 4

When a good is demanded for more the one distinctive purpose / use

Wood is used for paper and furniture

Question 5

What is joint supply ?

Answer 5

When an increase in the supply for one good leads to an increase in supply for another
Eg
Honey royal jelly

Question 6

What is there not in joint supply ?

Answer 6

No opportunity cost

Question 7

What is a normal good ?

Answer 7

Increase in income leads to increase in demand

Question 8

Inferior good

Answer 8

Cheaper alternative not a high quality good

Question 9

Substitute def
Xed positive

Answer 9

A good than can be used for the same purpose as another such that an increase in price for one good leads to an increase in demand for another

Question 10

Complemtry
XED neg

Answer 10

Good that are bought and consumed together
Increase in price for one good leads to an increase in price for another