Inter-Relationships between markets

• joint demand

  Demand for complementary goods and services

  Eg fish and chips
• Competitive demand

  the demand for substitute goods

  eg sugar and artificial sweetener
• derived demand

  when the demand from one good creates demand for another in its production process

  eg increased demand for houses results in an increased derived demand for bricks
• joint supply

  supply created by complementary goods

  eg greater supply of lamb creates a greater supply of wool
• competitive supply

  1. goods in competitive supply are alternative products a firm could make with its resources eg. a farmer growing carrots instead of potatoes
  2. The opportunity cost of increasing production of one crop is sacrificing the other