as joint and complementary demand
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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
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)
What would happen to…
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
What would happen to…
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
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