Joint Supply

AAA

DEFINITION of 'Joint Supply '

An economic term referring to a product or process that can yield two or more outputs. Common examples occur within the livestock industry: cows can be utilized for milk, beef and hide; sheep can be utilized for meat, wool and sheepskin. If the supply of cows increases, so will the supply of dairy and beef products.

INVESTOPEDIA EXPLAINS 'Joint Supply '

Where joint supply exists, the supply and demand for each product is linked to the others originating from the same source. For example, if demand increases for wool, and sheep farmers therefore raise more animals for wool, there will eventually be increased sheep meat production, resulting in greater meat supply and potentially lower prices.

RELATED TERMS
  1. Law Of Supply And Demand

    A theory explaining the interaction between the supply of a resource ...
  2. Theory Of Price

    An economic theory that contends that the price for any specific ...
  3. Economics

    A social science that studies how individuals, governments, firms ...
  4. Macroeconomics

    The field of economics that studies the behavior of the aggregate ...
  5. Microeconomics

    The branch of economics that analyzes the market behavior of ...
  6. Monopoly

    A situation in which a single company or group owns all or nearly ...
Related Articles
  1. Cost-Push Inflation Versus Demand-Pull ...
    Entrepreneurship

    Cost-Push Inflation Versus Demand-Pull ...

  2. The Roles Of Traders And Investors In ...
    Investing Basics

    The Roles Of Traders And Investors In ...

  3. How Influential Economists Changed Our ...
    Fundamental Analysis

    How Influential Economists Changed Our ...

  4. How Fannie Mae And Freddie Mac Were ...
    Economics

    How Fannie Mae And Freddie Mac Were ...

comments powered by Disqus
Hot Definitions
  1. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  2. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  3. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  4. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  5. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  6. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
Trading Center