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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

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

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