1. AS Economics
Demand and Supply analysis

3. 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.

4. 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

5. Andy Murray wins Wimbledon,
what happens to D&S for tennis
rackets?
Price
S
P1
D
Q
1
Quantit
y
End

6. Today’s objectives
• Understand the impact of
derived and complementary
demand
• Understand the impact of
joint supply
• Apply your understanding to
different case studies

7. What would happen to…
wages, if
demand for
goes up? goes down?

8. Two different markets = derived demand
Factor market (labour)
Good market
S
Price
S
Price
P1
P1
D
D
Q1
Quantity
Q1
Quantity

9. What would happen to…
Demand for
if
go up?
prices
go down?

10. Two different markets = complementary
demand
Price
S
S
Price
P1
P1
D
D
Q1
Quantity
Q1
Quantity

11. What would happen to…
Supply of
if
the supply of
goes up? goes down?

12. Two different markets = joint supply
S
Price
S
Price
P1
P1
D
D
Q1
Quantity
Q1
Quantity

13. 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

14. 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?

15. Over to you (2)
• Read the
information about
the Chelsea
Tractors on page
44
• Answer the three
questions in your
pairs
• 15 mins
End

16. 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