Assume that the equilibrium price of French fries rises, while the equilibrium quantity falls. The most consistent explanation for this observation is: a. An increase in the price of onion rings (a substitute for French fries). b. A fall in the price of onion rings. c. A rise in the price of potato bread (production-side substitute for French fries) d. A fall in the price of potato bread. Note: the answer is alternative C) and you are asked to argue why it is correct; and further argue why the other alternatives are false or uncertain.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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Assume that the equilibrium price of French fries rises, while the equilibrium quantity falls. The most consistent explanation for this observation is:
a. An increase in the price of onion rings (a substitute for French fries).
b. A fall in the price of onion rings.
c. A rise in the price of potato bread (production-side substitute for French fries)
d. A fall in the price of potato bread.
Note: the answer is alternative C) and you are asked to argue why it is correct; and further argue why the other alternatives are false or uncertain.

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