Question

b. The supply of chicken meat in Pakistan increases, causing meat prices to fall. Lower prices always mean that Pakistani households spend more on meat.

Answer 1

• Increase in supply can be caused by decrease in demand causing prices to fall.
• Increase in supply can results to decrease in price and increase in quantity
• Lower prices don't always translate to higher spending on a commodity,thus Pakistan spending on meat could decrease if the change in quantity demanded is less than change in price.
• This statement;Lower prices always mean that Pakistani households spend more on meat IS NOT TRUE.