The increase in the demand for a commodity may lead to a decrease in the demand for another if both are?

A. in complementary demand
B. of the same quality
C. in composite demand
D. in competitive demand

Correct Answer:

Option D – in competitive demand

Explanation

Competitive demand is also known as subtituted demand. There are alternative commodities which can satisfy similar wants wants i.e they posses identical utilities. An increased in demand for one will lead to a decreased demand for the other.