Interrelationship between markets

Question 1

Joint supply

Answer 1

When one good is produced, another good is also produced from the same raw materials, perhaps as a by-product

Question 2

Example of joint supply

Answer 2

The demand for beef increases(possibly due to rising i comes in economically developing countries), with the slaughter of more cows to meet this demand leading to production of more cow hides, which increases the supply of leather

Question 3

Joint supply interrelationsjip

Answer 3

A rise in the price of the first good leads to a rightward shift of the supply curve of the other good in joint supply, so the price of this good falls

Question 4

Competitive demand

Answer 4

When a good is viewed by consumers as an alternative for another good

Question 5

Examples of products in competitive demand

Answer 5

Sony and Xbox comsoles

Question 6

Composite demand

Answer 6

Demand for a good which has more than one use, which means an increase in demand for one use of the good reduces the supply of the good for an alternative use

Question 7

Reasons for high food prices

Answer 7

Growth in production of biofuel - more wheat and maize is used for biofuel, so less is a ailable for food

Question 8

Derived demand

Answer 8

Demand for a good or factor of production, wanted not for its own sake, but as a consequence of the demand for something else

Question 9

Example of derived demand

Answer 9

If the demand for cars falls, so does the demand for engines and gear boxes

Question 10

Examples of consumer durable goods

Answer 10

Cars
Houses

Question 11

Consumer durable goods

Answer 11

Deliver a constant stream of consumer services throughout its life

Question 12

Depreciation

Answer 12

Decline in economic value of an asset over time