ABSTRACT
Joint demand exists when component products are influenced by similar demand forces of related products. For example, the demand for transmissions at an automobile factory is related to demand for other component parts such as batteries, tires, spark plugs, and shock absorbers. A labor strike or work stoppage that interrupts the production of automobiles affects all of the manufacturer’s suppliers. Thus, transmissions, tires, batteries, and other products used in the manufacturing of the automobile would be either reduced or stopped. Also, if the supply of one component used in the manufacture of a product is delayed, reduced, or stopped, the impact is felt on the demand for every component used in that product.
