Solving Simple Equations

Answer to Try It

• The sale of eggs falls when prices rise and falls when income rises
  Incorrect. While it is true that the sale of eggs fails when prices rise, sales should increase when income rises.
• The sale of eggs falls when prices rise but increase when consumer income rises.
  Correct. Consumers will likely purchase fewer eggs if egg prices rise and will also enjoy more eggs when income rises.
• The sale of eggs rises when the price rises but falls when income falls.
  Incorrect. While it is true that the sale of eggs fails when prices rise, sales should increase when income rises.