CAIE A-Level Economics 2.4.3 Relationships between markets

Cambridge International AS & A Level Economics 9708 syllabus for exams in 2026, 2027 and 20282026–2028

Practise linking related markets through complements, substitutes, derived demand and joint supply using price and demand changes.

How this is tested

predict demand changes for complements and substitutes after a price change
distinguish joint supply from joint demand using real product relationships

[Maximum number: 1]

The demand for electric vehicle batteries is derived from the demand for electric vehicles. To tackle climate change, a government subsidises producers of electric vehicles.

What are the likely effects of this subsidy on the price and sales of electric vehicle batteries?

price

sales

decrease

increase

decrease

increase

How this is tested

Question 11