The price of cereal rises. As a result, people have cereal for breakfast on fewer days and eat eggs instead. This behavior is an example of
A) a decrease in the quantity demanded of cereal because of the substitution effect.
B) an increase in the quantity demanded of eggs because of the income effect.
C) a decrease in the quantity supplied of cereal because of the substitution effect.
D) an increase in the quantity supplied of eggs because of the income effect.
A
You might also like to view...
When did housing prices start to fall during the most recent housing boom?
A) 2005 B) 2006 C) 2007 D) 2008
In the electric power industry, residential customers have relatively ____ demand for electricity compared with large industrial users. But contrary to price discrimination, large industrial users generally are charged ____ rates
a. similar, similar b. elastic, lower c. elastic, higher d. inelastic, lower e. inelastic, higher