Market Interrelationship Flashcards
What is interrelationships between markets
Its understanding how changes in one market affect other markets
When are goods in competing demand
When they’re substitute goods
What is composite demand
When a good is demanded for two or more separate uses. Such as milk, which can be used to make yogurt or cheese
What is derived demand
The demand for a factor of production used to produce a good. Such as bricks being used to build houses or ovens used to make pizzas or tyres to make cars
What is joint supply
When production of one good increases supply of a by-product
What is joint demand
When 2 goods complement each other such as an iphone and iphone apps
What are complementary goods
Goods which are bought and used together such as a ps5 console and a controller or an iphone and iphone apps
