Interrelationships between markets

Land is an example of a resource that is in composite demand. Land can be used to produce soya beans and for forestry. Between January 2019 and January 2024, the market price of soya beans increased by almost 40%. This was largely driven by the rise in demand for soya beans.

Which one of the following diagrams, A, B, C or D, shows the most likely effect of the increase in demand for soya beans on the market for land that is used for forestry?

Figure 3 shows how the markets for Good X and Good Y are affected by an increase in the demand for Good X.

It can be concluded that Good X and Good Y are in

Explain how the data in Extract A (Table 1 and Figure 1) show that developments in the car market are the main reason for the changing demand for lithium-ion batteries in the UK.

Carrots and potatoes are grown using the same factors of production. Figure X shows the demand (D_C) and supply (S_C) curves for carrots. Figure Y shows the demand (D_P) and supply (S_P) curves for potatoes. A change in people’s preferences shifts the demand for carrots from D_C1 to D_C2. As a result, the supply of potatoes shifts from S_P1 to S_P2.

Which one of the following statements correctly explains the changes shown in Figures X and Y ?

Explain the factors that a commercial aircraft manufacturer, such as Boeing or Airbus, should consider when forecasting the future sales of its aircraft.

Explain how the concept of cross elasticity of demand can be used to understand the relationship between markets.

Beef and leather are in joint supply. Changes in farming methods have resulted in a significant fall in the price of chicken, a substitute for beef. All other things being equal, which one of the following diagrams, A, B, C, or D, best illustrates the effects of the fall in the price of chicken on the market for leather?