What happens to the demand curve for milk when there is a sale on cereal?

When there is a sale on cereal, it can lead to an increase in the demand for milk. This is primarily due to the complementary relationship between cereal and milk; when people buy more cereal, they are likely to purchase more milk to go along with it. The demand curve for milk shifts to the right as more consumers are willing and able to buy milk at various price levels, reflecting this increased demand that results from the lower price of cereal.

The rightward shift indicates that at every price point, consumers will purchase more milk because it is often consumed together with cereal. This change in consumer behavior illustrates how the demand for one product can influence the demand for another, particularly when they are complementary goods.