The increase in the demand for a commodity may lead to a decrease in the demand for another if both are
Answer Details
If two commodities have complementary demand, it means that they are typically used together, like cars and gasoline. In this case, an increase in demand for one commodity will lead to an increase in demand for the other.
On the other hand, if two commodities are in competitive demand, they are substitutes for each other, like coffee and tea. In this case, an increase in demand for one commodity will lead to a decrease in demand for the other, as consumers will switch to the substitute that has become relatively cheaper or more readily available.
If two commodities are in composite demand, it means they are used in the production of a final product, like flour and bread. An increase in demand for the final product will lead to an increase in demand for both commodities, while a decrease in demand for the final product will lead to a decrease in demand for both commodities.
Therefore, the answer is: If two commodities are in competitive demand, an increase in the demand for one will lead to a decrease in the demand for the other.