Save
Microeconomics
Price determination in a competitive market
Interrelationships between markets
Save
Share
Learn
Content
Leaderboard
Share
Learn
Created by
Marinette Dupaincheng
Visit profile
Cards (5)
What is joint demand?
When consumers use two products together, also known as
complementary goods
The change in
price
of one good impacts the
demand
for the other good
e.g
Coffee
and sugar
Cereal
and milk
Smart phones
and mobile apps
What is competitive demand?
Two
goods are used for the
same
purpose, also known as
substitute
goods
The change in
price
of one good impacts the
demand
for the other good
e.g
Cinema tickets and
online streaming services
Tea and
coffee
E-books
and printed books
What is composite demand?
Two or more
goods require the same
input
to make them
An
increase in production
of one good could lead to a
decrease in supply
of another good, as less of the
input
is
available
e.g
Cheese
and yogurt require the same input (
milk
)
Growing crops
or raising livestock requires the same input (
land
)
What is derived demand?
Demand for a good or service arises from the
demand
for
another
good or service
The demand for
inputs
is derived from the
demand
for the
final
product
e.g
Aluminium and
cars
Labour and
goods & services
What is joint supply?
The supply of
two
different
goods stems from the
same
source
The
increase in production
of one good will
increase
the production of another good.
The
second
good may be a
by-product
of the first good
e.g
Beef
and cow leather
Poultry meat
and feathers
Honey
and beeswax