3e. Interrelationship between markets

Complements

• A fall in price of washing machines will lead to a rise in the quantity demanded and therefore also increase the demand for washing powder

  

Substitutes

• An increase in price of beef will lead to a decrease in the quantity demanded and therefore an increase in the demand for pork

  

Derived demand

• An increase in the demand for cars will lead to an increase in demand for steel. Steel is said to be in derived demand from cars

  

Composite demand

• An increase in the demand for oil from chemical producers will result in a fall in the supply of oil to the petrol market

  

Joint supply

• An increase in demand for Beef, which lead to more beef being produced, results in an increase in the supply of leather