The price of cereal rises. As a result, people have cereal for breakfast on fewer days and eat eggs instead. This behaviour is an example of
A) a decrease in the quantity demanded of cereal because of the substitution effect.
B) a decrease in the quantity supplied of cereal because of the substitution effect.
C) an increase in the quantity demanded of eggs because of the income effect.
D) an increase in the quantity supplied of eggs because of the income effect.
Correct Answer:
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