If bread is an inferior good and if the price of bread increases, the income effect the quantity demanded, and the substitution effect the quantity demanded.

increases

decreases

Explanation:

Whenever the price of a commodity that is perceived as an inferior good rises, because of its negative perception, it tends to now become a bit of a luxury good; and the income effect will tend to increase the quantity purchased (because when you have more income you can afford more expensive goods), while the substitution effect (which is the propensity of consumers switching to cheaper substitutes because of rise in price) will tend to reduce the quantity purchased.

Therefore, If bread is an inferior good and if the price of bread increases, the income effect increases the quantity demanded, and the substitution effect decreases the quantity demanded.

what are the sentences? so we can answer the question.

the answer would be voluntary exchange -

"the act of buyers and sellers freely and willingly engaging in market transactions. moreover, transactions are made in such a way that both the buyer and the seller are better off after the exchange than before it occurred."

hope this : )

-shy