Interrelationships of Markets Flashcards
1
Q
What is joint demand?
A
Complements, when demand for one product usually leads to demand for the other.
2
Q
What is competitive demand?
A
Substitutes, products where consumers generally choose to but one or the other.
3
Q
What is derived demand?
A
The demand for one product directly affects the demand for the other product.
4
Q
What is composite demand?
A
When the same product can be used for multiple different purposes.
5
Q
What is joint supply?
A
Increasing the supply of one product will automatically increase the supply of another, it is unintentional and unavoidable.
