The demand for cereal will decrease as the price of milk decreases as breakfast cereals and milk are consumed together at the same time.
Changes in tastes, population, income, pricing of substitute or complement items, and expectations of future circumstances and prices are all factors that can affect the demand curve for goods and services, causing a different quantity to be demanded at any given price.
A movement to the left in the demand curve implies a decline in demand as consumers buy fewer things at the same price. If no one buys the candy bar, the merchant reduces the price to $4. According to the normal demand curve, this price reduction should be enough to sell a candy bar.
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