A situation in which an increase in demand for certain goods leads to a fall in demand for other goods is known as
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The situation in which an increase in demand for certain goods leads to a fall in demand for other goods is known as competitive demand. This occurs when two or more products are in direct competition with each other and are seen as substitutes by consumers. As the demand for one product increases, consumers may shift their purchases away from the competing product, causing a fall in its demand. For example, if the demand for hamburgers increases, it may lead to a fall in demand for hot dogs because they are both considered fast food options and are substitutes for each other.