If eggs and sausage are substitutes, then when the price of eggs increases, the quantity demanded of eggs _____, and the demand for sausage _____.
A) decreases; decreases
B) decreases; increases
C) increases; increases
D) increases; decreases

Question

Quizplus · Accepted Answer

When the price of eggs increases, the quantity demanded of eggs decreases because consumers will buy less of a good as its price rises, assuming all other factors remain constant. At the same time, the demand for sausage, being a substitute, increases as consumers switch to sausage from the now more expensive eggs.

If Eggs and Sausage Are Substitutes, Then When the Price