How do I know whether to use a supply or demand shift graph when I see a econ question? Also how would I approach this question to begin solving it?
Question:
Because bacon and eggs are eaten together, they are complements.
We observe that both the equilibrium price of eggs and the equilibrium quanity of bacon have risen. What could be responsible for this pattern - a fall in the price of chicken feed or a fall in the price of pig feed? Illustrate and explain your answer.