When bakeries produce sliced bread, they also produce bread crumbs. Bakeries sell the sliced bread to families and sell the bread crumbs to fish shops. When the price of bread crumbs rises, what happens to the supply of sliced bread and its price?

When bakeries produce sliced bread, they also produce bread crumbs. Bakeries sell the sliced bread to families and sell the bread crumbs to fish shops. When the price of bread crumbs rises, what happens to the supply of sliced bread and its price?

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter4: The Market Forces Of Supply And Demand

Section: Chapter Questions

Problem 3PA: Consider the market for minivans. For each of the events listed here, identify which of the...

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Sliced bread and bread crumbs are ________. When the price of bread crumbs rises, the supply of sliced bread ________ and the price of sliced bread ________.

substitutes in production; increases; falls

complements in production; increases; falls

complements in production; does not change; does not change

substitutes in production; decreases; rises

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