AS Joint and Complementary demand
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AS Joint and Complementary demand

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AS Joint and Complementary demand Presentation Transcript

  • 1. AS Economics Demand and Supply analysis
  • 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. 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. Andy Murray wins Wimbledon, what happens to D&S for tennis rackets? Price S P1 D Q 1 Quantit y End
  • 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. What would happen to… wages, if demand for goes up? goes down?
  • 7. Two different markets = derived demand Factor market (labour) Good market S Price S Price P1 P1 D D Q1 Quantity Q1 Quantity
  • 8. What would happen to… Demand for if go up? prices go down?
  • 9. Two different markets = complementary demand Price S S Price P1 P1 D D Q1 Quantity Q1 Quantity
  • 10. What would happen to… Supply of if the supply of goes up? goes down?
  • 11. Two different markets = joint supply S Price S Price P1 P1 D D Q1 Quantity Q1 Quantity
  • 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. 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. 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. 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