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Flashcards in Interrelated Markets Deck (10)
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1

Complements (joint demand) definition

products that are used together

2

Complement (joint demand) examples

Cars and petrol
↑ Price of cars --> Contraction of quantity demanded for cars
↓ Demand for petrol

3

Substitutes (competitive / alternate demand) definition

products that can replace each other / are rivals.

4

Substitutes (competitive / alternate demand) examples

Tea or coffee
↑ Price of Tea --> Contraction of quantity demanded for tea
↑ Demand of coffee

5

Composite Demand definition

products demanded for more than one use.

6

Composite Demand example

Oil is used to make petrol, diesel, plastic.
↑Demand for oil for petrol
↓Supply of oil for plastic

7

Derived Demand (input demand) definition

demand for a FOP is derived from the demand for the product it produces.

8

Derived Demand (input demand) example

Demand for aluminium comes from the demand for cars
↑ Demand for Cars
↑ Demand for Aluminium

9

Joint Supply

two or more goods are produced together from the same origin.

10

Joint Supply example

beef and leather (cow hides)
↑ Demand for beef
↑ Supply of leather