Growing demand tends to reduce rivalry because all companies can sell more without taking market share away from each other.

Question

Quizplus · Accepted Answer

When demand increases, it often expands the overall market size and creates more opportunities for all companies to sell their products or services. This can reduce the level of competition between companies as they may not need to compete as aggressively for market share. Instead, they can focus on growing their own customer base and increasing their sales within the larger market.

Growing Demand Tends to Reduce Rivalry Because All Companies Can