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The following graph shows the market for cereal in San Diego, where there are over 1,000 stores that sell cereal at any given moment.

  

The following graph shows the market for cereal in San Diego, where there are over 1,000 stores that sell cereal at any given moment. Suppose the price of milk decreases. (Assume that people regard cereal and milk as complements.) Show the effect of this change on the market for cereal by shifting one or both of the curves on the following graph, holding all else constant. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther. Supply Demand Supply QUANTITY (Boxes) Now suppose Congress passes a new tax that decreases the income of San Diego residents. If cereal is a normal good, this will cause the demand for cereal to decrease PRICE (Dollars per box) ON O

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