AS Economics
Demand and Supply analysis
The wettest summer in 100
years?
1. Read the text and highlight key points
2. Draw a demand and supply diagram to
show wha...
Write down the 5 stages of a
move from one equilibrium to
another
1.
2.
3.
4.

Equilibrium
Change in supply or demand
Dise...
Andy Murray wins Wimbledon,
what happens to D&S for tennis
rackets?
Price

S

P1

D
Q
1

Quantit
y

End
Today’s objectives
• Understand the impact of
derived and complementary
demand
• Understand the impact of
joint supply
• A...
What would happen to…

wages, if
demand for

goes up? goes down?
Two different markets = derived demand
Factor market (labour)

Good market

S
Price

S

Price
P1

P1

D

D
Q1

Quantity

Q...
What would happen to…

Demand for
if

go up?

prices
go down?
Two different markets = complementary
demand

Price

S

S

Price
P1

P1

D

D
Q1

Quantity

Q1

Quantity
What would happen to…

Supply of

if

the supply of

goes up? goes down?
Two different markets = joint supply

S
Price

S

Price
P1

P1

D

D
Q1

Quantity

Q1

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

1.Derived demand
2.Complementary demand
...
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 f...
Over to you (2)
• Read the
information about
the Chelsea
Tractors on page
44
• Answer the three
questions in your
pairs
• ...
Over to you (3)
• Read the
information about
the Olympic
Games on page 46
• Answer questions
2, 3 and 4 in your
pairs
• 15...
AS Joint and Complementary demand
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AS Joint and Complementary demand

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AS Joint and Complementary demand

  1. 1. AS Economics Demand and Supply analysis
  2. 2. The wettest summer in 100 years? 1. Read the text and highlight key points 2. 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.
  3. 3. Write down the 5 stages of a move from one equilibrium to another 1. 2. 3. 4. Equilibrium Change in supply or demand Disequilibrium Reaction of the market to restore equilibrium 5. New equilibrium
  4. 4. Andy Murray wins Wimbledon, what happens to D&S for tennis rackets? Price S P1 D Q 1 Quantit y End
  5. 5. Today’s objectives • Understand the impact of derived and complementary demand • Understand the impact of joint supply • Apply your understanding to different case studies
  6. 6. What would happen to… wages, if demand for goes up? goes down?
  7. 7. Two different markets = derived demand Factor market (labour) Good market S Price S Price P1 P1 D D Q1 Quantity Q1 Quantity
  8. 8. What would happen to… Demand for if go up? prices go down?
  9. 9. Two different markets = complementary demand Price S S Price P1 P1 D D Q1 Quantity Q1 Quantity
  10. 10. What would happen to… Supply of if the supply of goes up? goes down?
  11. 11. Two different markets = joint supply S Price S Price P1 P1 D D Q1 Quantity Q1 Quantity
  12. 12. What are the four impacts of changes in demand and supply in associated markets? 1.Derived demand 2.Complementary demand 3.Joint supply 4.Substitute products
  13. 13. 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?
  14. 14. Over to you (2) • Read the information about the Chelsea Tractors on page 44 • Answer the three questions in your pairs • 15 mins End
  15. 15. Over to you (3) • Read the information about the Olympic Games on page 46 • Answer questions 2, 3 and 4 in your pairs • 15 mins End

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