Interrelationship Between Markets

Question 1

What are the 5 factors of inter-relationship?
J J C C D

Answer 1

• Joint Demand
• Joint Supply
• Competing Demand
• Composite Demand
• Derived Demand

Question 2

What is JOINT DEMAND and it’s relationship?

Answer 2

Joint demand is the relationship between complementary goods.

If the price for good X increases then the demand for good Y decreases

Question 3

What is the COMPLEMENTARY GOODS relationship?

Answer 3

Increase in price of good X, Demand for good X & Y decreases.

Question 4

What is COMPETING DEMAND and it’s relationship?

Answer 4

Competing demand describes the relationship between substitute goods

If the price for good X increases then the demand for good Y increases

Question 5

What is SUBSTITUTE GOODS relationship?

Answer 5

Increase in price of good X, Demand for good X decreases, Demand for good Y increases.

Question 6

What is COMPOSITE DEMAND?

Answer 6

Demand for a good which has two uses

Question 7

What is DERIVED DEMAND?

Answer 7

Demand for a good which is used in the production of other goods

Question 8

What is JOINT SUPPLY?

Answer 8

Supply of a particular good also leads to supply of a by-product.

Question 9

What is COMPETING SUPPLY?

Answer 9

A good can be put to more than one use. Employing it in one form means it can not be used in another manner.