What would happen in the market for shredded wheat cereal if the price of wheat decreased while the price of corn flakes (a substitute) increased? (DRAW THE CURVES!)
a. The equilibrium price would increase, but the impact on quantity would be uncertain.
b. The equilibrium price would decrease, but the impact on quantity would be uncertain.
c. Both equilibrium price and quantity would decrease.
d. The equilibrium quantity would increase but the impact on price would be uncertain.
e. The equilibrium quantity would decrease but the impact on price would be uncertain