Question
I have seen both the True and False logic for this question which I will post below and is confusing me. Please tell me which
I have seen both the "True" and "False" logic for this question which I will post below and is confusing me. Please tell me which one is correct and why - thanks!
An article in the Wall Street Journal on Friday May 27, 2011 titled "The Return of Meatless Friday", discusses the sociological aspects of a recent announcement by the bishops of the catholic church in England and Wales.The bishops asked their parishioners to abstain from red meat every Friday for the entire year; not just during Lent.Some have claimed that if English and Welsh catholics reduce consumption of red meat by 5 tons every Friday, there would then be 5 tons more meat each week for others, including the poor, to eat.Assuming a typical upward sloping supply curve and downward sloping demand curve, over the long term, is the statement true or false?
a.Trueb.False
"True": As we see that the announcement will reduce demand of meat 5 tons every Friday. The supply of the meat will remain unaffected. The decrease in demand will make the 5 tons of meat available to other sections of the population who was not consuming at the previous price. By cutting the demand to 5 tons I will certainly impact the price of the red meat. Therefore the answer is "true".
"False": Reduction in consumption of red meat by the catholics by 5 tons may not necessarily increase the consumption of the same by others. Main reason is there is no shortage of red meat, that reduction of its consumption by one part of consumers will be compensated for by the other part. So, if any non-catholic was not eating the meat already may as well choose not to consume it still. Thus, the given statement is False.
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