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With new technology like machines sorting different cereal into the right bag, or building a cereal box inonly a few seconds, it improves production, making more supply for consumers.

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The cereal industry usually have a few firms producing most of the cereal brands, but with more smaller firms entering, would lead to the suppy curve shifting right

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In order for no defects or to make sure that each box of cereal is at full quality, new employers have to go through training until they pass tests to be involved in the assembly line

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Consumers are favoring wheat cereal over rice or oat cereal, so suppliers are making more wheat cereal for more consumers

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Cereal companies would get their resources from farms as the main ingredients in cereal would be rice, corn, or wheat

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Consumers expected there to be a storm in the next few weeks causing them to buy more boxed foods such as cereal

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Consumers want something different for breakfast other than cereal resulting in them seeking a new breakfast food

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The price of oatmeal has gone down, lower than the price of cereal leading to a decrease in demand for cereal.

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Due to government organizations like the FDA, cereal brands would need to pass government regulations from the safety of the cereals to the advertisements in order to be sold in stores

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If the price of milk goes up then the demand for cereal will go down

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The economy is now in recession and people are making less money than they did before so they are more likely to buy cereal increasing the demand

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As people are growing up they are less interested in eating sugary and fruity cereal so the demand for cereal goes down

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The Law of Supply and how it will affect the Cereal Market.

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The Law of Supply and how it will affect the Cereal Market.

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Opposite of The Law of Demand which has a inverse relationship. The Law of Supply has a direct relationship as an increase in price results in a increase in quantity supplied. Meaning that if the price for cereal increases that the supplier will seek to supply more stores with the necessary amounts of cereal to satisfy the customer. And much like its counter part the Law of Supply can also affect the cereal market when the price for cereal decreases, the quantity supplied will decrease as well.

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The Law of Demand and how it will affect the Cereal Market.

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The Law of Demand and how it will affect the Cereal Market.

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As the Law of Demand states as the price of a good decreases, quantity demanded increases. Which will remain true in this situation as cereal is a very popular product among our people. But like the other side of the law states if the price cereal as a whole or a specific brand  increases the people will seek to buy less of the product or seek a substitute.