Yes it is correct, simple like that, people in the other comments are talking about litlle variations they use depending onthe country they live, Like if you say "I told you" while other people would say "I told you but you never listen"
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March 1, 2018
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Answer is: "My cereal costs four dollars" Because we always add an "S" after the verb when we are talking in (singular) third person as "he, she, it", so in this case IT IS A CEREAL so A CEREAL COSTS 4 DOLLARS
