7.2 In Section 2.7, you learned how to analyze the effect on cereal producers of laws that required the addition of significant amounts of ethanol to gasoline. Suppose that at the same time these laws were passed, consumers’ incomes decreases.

If name-brand cereal, such as that produced by Kellogg, is a normal good, what will be the impact on the price and quantity? Use a demand and supply figure as part of your answer.