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
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