However, if the demand for one product (cars) in Figure 2 (A) goes from D to D1, the demand for the other product (petrol) will increase from D to D1 in Panel B. As a result, the prices of both OP1 products will fall inches. On the contrary, an increase in demand for one product (cars) will increase demand for the other product (petrol) and, as a result, prices will increase for both. Figure 3 (A) shows the case of wheat and Figure 3 (B) the case of straw. When wheat demand shifts from D to D1, the price of wheat moves from OP to OP1 and the amount of wheat from OQ to OQ1. The result is an increase in the supply of straw from OQ to OQ1 (indicated by the move of the S-curve to the right as S1,). As a result, the price of straw falls from the PO to PO1 The interaction between the prices of common products with different shares is shown in Figure 4. Sw is the marginal cost curve (supply) of wool and SM is the sheep supply curve. Let D be the initial demand curve for both products. As a result, Qw quantity of wool is sold at the Pw price, and Qm Quantity of Sheep is sold at the De Lam price. Figure 1 (A) shows the motor vehicle market and Figure 1 (B) for gasoline.
If the price of cars goes from OP to OP1, their demand is reduced from OQ to OQ1. Gasoline demand is decreasing, as shown by the D1 point curve in the panel (B), with the required amount of OQ falling to OQ1. In the second category, common products such as wool and sheep, whose proportions may vary. For such products, the price can be determined by variation in product shares. For example, sheep provide wool and sheep, but their proportions vary from breed to breed. Composite demand is for goods, services or goods with different uses. This concept is more important when the demand for global multi-use raw materials is taken into account. Metals such as copper, tin and zinc, for example, have different uses. This means that variations in the demand for use, such as. B in major construction projects in China, will drive up world prices of these metals.
This in turn reduces the availability of other applications, such as . B for automotive production, as well as raw material prices and production costs. The joint application refers to the relationship between two or more goods or services when they are required together. There is a common demand for cars and gasoline, pens and ink, tea and sugar, etc. The assets required in common are complementary. Marshall has devised certain conditions when a certain factor (z.B Maurer) solicited in conjunction with other factors can increase his remuneration by withholding his delivery. Suppose masons employed in the construction of houses threaten to withhold their supply if their wages are not increased. There are a number of products that have a common source of supply because they are manufactured together. The production of one product automatically involves the production of another, such as wool and sheep meat, wheat and straw, cotton and cotton seeds, etc.