Final answer:
Demand for corn flakes cereal can be affected by the price of substitutes and complements, health trends, and income levels. An increase in the price of a substitute like corn flour may raise demand for the cereal, while a rise in the price of a complement such as milk could decrease it. Demand can also shift based on health information and changes in consumers' income.
Step-by-step explanation:
The demand for a specific brand of corn flakes cereal is likely influenced by several factors that can cause it to increase or decrease. According to economist Caroline Krafft, the price of substitutes and complements plays a significant role in demand. If the price of a substitute product, like corn flour, goes up, then the demand for the cereal may rise as people look for alternative breakfast options. Conversely, if a complement's price increases, such as milk, then the demand for the cereal might decrease as the overall cost of the breakfast rises.
Other factors, such as health trends and income levels, can also impact demand. For example, if a scientific study suggests that eating corn flakes is healthy, demand might increase. Similarly, when people's income rises, they tend to buy more goods and services, which could include corn flakes cereal. Conversely, if there's a negative perception about cereal or if income levels fall, the demand could decrease.