Identify the flaw in this analysis: “If more Bahamians go on a low-carb diet, the demand for pasta will fall. The decrease in the demand for pasta will cause the price of pasta to fall. The lower price, however, will then increase the demand. In the new equilibrium, Americans might end up consuming more pasta than they did initially.”
Identify the flaw in this analysis: “If more Bahamians go on a low-carb diet, the demand for pasta will fall. The decrease in the demand for pasta will cause the price of pasta to fall. The lower price, however, will then increase the demand. In the new equilibrium, Americans might end up consuming more pasta than they did initially.”
Chapter3: Supply And Demand: Theory
Section: Chapter Questions
Problem 24QP
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Identify the flaw in this analysis: “If more Bahamians go on a low-carb diet, the
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