Interrelationship Between Markets (AQA A-Level Economics): Flashcards
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Joint supply definition
Joint supply definition
Producing one good automatically creates another (by-product)
Joint supply: by-product price when main product demand rises
Joint supply: by-product price when main product demand rises
By-product price falls due to increased supply
Competitive demand definition
Competitive demand definition
Goods are substitutes/alternatives for each other
Composite demand definition
Composite demand definition
Single good has multiple different uses
Composite demand example: crops
Composite demand example: crops
Crops used for food or biofuels - competing uses
Derived demand definition
Derived demand definition
Demand for good needed to produce something else
Positive cross elasticity meaning
Positive cross elasticity meaning
Goods are substitutes in competitive demand
Negative cross elasticity meaning
Negative cross elasticity meaning
Goods are complements in joint demand
Agricultural markets: long-run price trend & why
Agricultural markets: long-run price trend & why
Prices fall - supply shifts exceed demand shifts
Agricultural markets: cause of short-run price volatility
Agricultural markets: cause of short-run price volatility
Weather/harvest variations shift supply unpredictably