market interrelationships

Question 1

what are interrelated markets

Answer 1

Markets are interrelated and rely on one another in the intricate web of economic activity.

Question 1

joint supply

Answer 1

joint supply is when the production of one good increases supply of a by product
eg sheeps wool and lamb
crops and bio fuel

Question 2

joint demand

Answer 2

another term for complementary goods

Question 3

competing demand

Answer 3

Competing demand is just another way of describing two goods which are substitutes. An increase in the price of one good will increase the demand for the other as people substitute towards the cheaper good. Goods in competing demand therefore have a positive XED.

Question 4

composite demand

Answer 4

A good is in composite demand when it is demanded for two or 2 or more separate or different uses.
for example if alimumium is in compsoite demand with cans and cars
if cars increase there demand for aluminium this will shift the demand curve to the right this will then increase the supply curve for cars to the right however this will shift the supply for cans to the left as there is less aluminium to supply for them

Question 5

derived demand

Answer 5

derived demand is demand for a factor of productiom to produce a good
eg pllastic wood etc
or eg Bricks are in derived demand in order to produce houses. An increase in demand for houses will increase the production of houses. This will increase the derived demand for bricks from house-builders.