A Cereal Shake-Up HOMEWORK May 2-May 7


The Post cereal company is about to give cereal lovers a treat. The good news is lower prices. Post said that it will cut the cost of its cereals about a dollar a box.

That's great news for shoppers. People have been complaining about the high price of cereal for years. Cereal in a box costs only about 50¢ to make. Boxes often sell for $4.00 or more.

The steep prices have made people wonder. More than 85% of cereal sold in the U.S. is made by four companies. Members of Congress want to find out if these companies are secretly agreeing to keep prices high. So far, no one has looked into this.

The cost of cereal includes more than just the flakes or O's you eat. The basic ingredients are similar in every box. Cereal is made of grains and sugar. So big cereal makers work hard to convince buyers that their brands are special.

These companies try to catch your eye. They create colorful boxes with cartoon characters on the front. They put games on the back. Sometimes they put prizes inside. TV ads also attempt to get your interest. Ads and fancy boxes cost money. That adds to the cereal's price.

The Post company decided to make a change. They knew that people were angry about high cereal prices. But Post isn't cutting prices just to be nice. It hopes that its lower prices will get people to buy their cereal.

Please enter your name. (optional)

First name

Last name


This activity was created by a Quia Web subscriber.
Learn more about Quia
Create your own activities