For consumers, pizza and hamburgers are substitutes. A rise in the price of a pizza causes _____ in the equilibrium price of a hamburger and _____ in the equilibrium quantity of hamburgers.
A)a rise; an increase
B)a rise; a decrease
C)a fall; an increase
D)a fall; a decrease

Question

Quizplus · Accepted Answer

When the price of pizza rises, consumers will switch to hamburgers, increasing the demand for hamburgers. This leads to a rise in the equilibrium price and an increase in the equilibrium quantity of hamburgers.

For Consumers, Pizza and Hamburgers Are Substitutes