Answer to Question #165241 in Economics of Enterprise for shahad

Question

Korean Pop Princes BTS have become vegan and tell all of their fans to stop eating beef because it’s murder. How will this affect shortage, surplus equilibrium price and quantity? What factor caused the change?

Answer 1

With celebrity stop demanding beef and asking fans to stop demanding beef too, demand for beef will reduce. But supply for beef will remain the same. So with decrease in demand but supply remaining the same, price and quantity both will decrease. To eliminate surplus equilibrium, price will keep on decreasing until equilibrium is established again. The factor causing this decrease in demand is decrease in number of consumers in the market.