Unit 8: Interrelationships between markets Flashcards
1
Q
Competitive Demand
A
When two or more goods are substitutes for eachother
2
Q
Complement
A
A good which is purchased alongside another good to satisfy a want
3
Q
Composite Demand
A
When a good is demanded for two or more distinct uses
E.g. Oil used for petrol and chemicals
4
Q
Derived Demand
A
When demand for one good is the result of or derived from the demand of another good
5
Q
Joint Demand
A
When two or more complements are bought together
6
Q
Joint Supply
A
When two or more goods are produced together, so that a change in the supply of one good will necessarily change supply of the other goods with which it is in joint supply.
7
Q
Substitute
A
A good which can be replaced by another to satisfy a want.
