Final answer:
A higher price for bagels would lead to an increased demand for bread, since bagels and bread are substitutes. The relationship between the prices of substitutes and demand is such that when the price of a substitute rises, the demand for the related good increases.
Step-by-step explanation:
Assuming bagels and bread are substitutes, a higher price for bagels would result in an increase in the demand for bread.
This happens because consumers will look for the next best alternative when the price of their preferred good increases.
According to Caroline Krafft, when the price of a substitute good goes up, the demand for the related good goes up as well.
In the context of hamburgers, if the price of a substitute good like hot dogs increases, the demand for hamburgers may increase as people look for an alternative.
However, if the price of a complement good such as hamburger buns also increases, it becomes more complex to predict the exact effect on the demand for hamburgers, as the two price changes could counteract each other.