The interrelationship between markets

Question 1

Do changes in a particular market affect other markets, yes or no

Answer 1

Yes

Question 2

Define join supply

Answer 2

when the production of one good increases the supply of a by product

Question 3

Define join demand

Answer 3

goods that are demanded together

Question 4

Stay another word for join demand

Answer 4

complementary goods, which are bought and used together

Question 5

State the implication of join demand

Answer 5

An increase in the price of one will decrease the demand for the other. This means that they have anegative cross elasticity of demand.

Question 6

Define competing demand

Answer 6

Two goods are in competing demand when they are substitute goods(goods which can replace another)

Question 7

Define composite demand

Answer 7

when a good has two or more separate uses

Question 8

State the implication of composite demand

Answer 8

An increase in production of one good could lead to a decrease in supply of another good, as less of the input is available

Question 9

State the implication of competitive/ competing demand

Answer 9

The change in price of one good impacts the demand for the other good

Question 10

Define derived demand

Answer 10

demand for a factor of production comes from demand for something else
- e.g. bricks are used to produce houses