A local bakery notices that when the price of bread increases, the quantity demanded decreases, and they also find that consumers are now buying more pastries instead. Which category best describes this situation?

This situation is an example of the law of demand, which states that when the price of a good goes up, people tend to buy less of it. In this case, when the price of bread increased, fewer customers wanted to buy it, so the bakery saw a decrease in the quantity demanded. Additionally, since bread and pastries can be considered substitutes, customers are now choosing to buy more pastries instead of bread. This shows how changes in price can lead to changes in consumer behavior and preferences. For example, if a loaf of bread costs $5, and people find it too expensive, they might decide to buy a pastry for $3 instead, leading to an increase in pastry sales.