as joint and complementary demand

AS EconomicsDemand and Supply analysis

The wettest summer in 100 years?

1. Read the text and highlight key points2. Draw a demand and supply diagram

to show what has happened to wheat. Explain it!

3. Will this reaction happen so smoothly in the real world? Why/why not?

4. What will be the effect of the wet weather on bread? Draw a diagram to explain your answer.

Write down the 5 stages of a move from one equilibrium to another

1. Equilibrium2. Change in supply or demand3. Disequilibrium4. Reaction of the market to restore

equilibrium5. New equilibrium

Andy Murray wins Wimbledon, what happens to D&S for tennis rackets?

Price

Quantity

D

S

P1

Q1

End

http://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=Jv8vGr2j3g5rSM&tbnid=LsZnaE69KLEuoM:&ved=0CAUQjRw&url=http://www.capitalfm.com/artists/emeli-sande/news/andy-murray-wimbledon-2013-victory/&ei=hiFUUtP_Nq2Y0QWohYGwBw&bvm=bv.53537100,d.d2k&psig=AFQjCNGEo2xodT7jW0maAfzLtO8cagkkkQ&ust=1381331712803326



http://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=LSs9oni0mfbwyM&tbnid=kdWLAB0lVEVStM:&ved=0CAUQjRw&url=http://tbivision.com/news/2013/07/bbcww-grabs-andy-murray-wimbledon-title/108762/&ei=liFUUsiYBqSm0AWOloBg&bvm=bv.53537100,d.d2k&psig=AFQjCNGEo2xodT7jW0maAfzLtO8cagkkkQ&ust=1381331712803326

http://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=EPtCuKYebI-Z0M&tbnid=FK0hCUNvf7wIdM:&ved=0CAUQjRw&url=http://commons.wikimedia.org/wiki/File:Tennis_Racket_and_Balls.jpg&ei=xSFUUsqrJobJ0QW0kIDgBg&bvm=bv.53537100,d.d2k&psig=AFQjCNFcbhMv9Oc7kKQio6JU_Nhz1AI2-Q&ust=1381331771033031

Today’s objectives• Understand the impact of

derived and complementary demand • Understand the impact of joint

supply• Apply your understanding to

different case studies

What would happen to…

wages, if

demand for

goes up? goes down?

Price

Quantity

D

S

P1

Q1

Price

Quantity

D

S

P1

Q1

Two different markets = derived demandGood market Factor market (labour)


Demand for

if

go up? go down?

prices

Price

Quantity

D

S

P1

Q1

Price

Quantity

D

S

P1

Q1

Two different markets = complementary demand


Supply of

the supply of

goes up? goes down?

if

Price

Quantity

D

S

P1

Q1

Price

Quantity

D

S

P1

Q1

Two different markets = joint supply

What are the four impacts of changes in demand and supply in associated markets?

1.Derived demand2.Complementary demand3.Joint supply4.Substitute products

Over to you (1)

1. What is a substitute product?2. Think of examples (e.g Coke and

Pepsi)3. What happens to the demand for one

when the price of the other rises?4. What happens to the demand for one

when supply of the other increases?

Over to you (2)

• Read the information about the Chelsea Tractors on page 44

• Answer the three questions in your pairs

• 15 mins End

http://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=Ja_IE5-k-V6KRM&tbnid=gt8GI0V0HMTcTM:&ved=&url=http://fikatown.com/shop/london-collection/chelsea-tractor/&ei=U1hVUrLgHOe50QWWwIHIAg&psig=AFQjCNErZMhBIcuDc54BuSbeTm0nMvpdhQ&ust=1381411239692780

Over to you (3)

• Read the information about the Olympic Games on page 46

• Answer questions 2, 3 and 4 in your pairs

• 15 minsEnd

http://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=J9q6PyVgDwi2jM&tbnid=wXozoZQ-o3HElM:&ved=0CAUQjRw&url=http://www.santabanta.com/photos/london-olympics-2012/9766024.htm&ei=8VdVUrKeLIKG0AWExYD4Ag&bvm=bv.53760139,d.d2k&psig=AFQjCNFch7AWo5OlbfwKCDhoAlo2Us161A&ust=1381411179336858

http://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=7yNOQBzh8oROBM&tbnid=kGG-NDtDy0vfXM:&ved=0CAUQjRw&url=http://www.moyeamedia.com/blog/?p=2716&ei=BFhVUtvTEObH0AWevoHYDA&bvm=bv.53760139,d.d2k&psig=AFQjCNFch7AWo5OlbfwKCDhoAlo2Us161A&ust=1381411179336858

as joint and complementary demand

Technology