Demand — practice question

Study the source material closely before you answer Question 1. Source material: Changes in eating habits In high income countries, worries about health, obesity and animal welfare have grown. This has contributed to a rise in vegetarianism (not eating meat) and veganism (not eating meat, eggs or dairy) in high income countries. In 2017, veganism rose by 20% in the UK. As incomes rise in the UK, people are more likely to eat vegan food. Promotion of vegan food has also helped to increase consumption. It is claimed that eating vegan food can improve people’s health. Healthier workers can produce more, and better quality, products. Eating less meat and dairy products can also benefit the environment. Farm animals release greenhouse gases and their waste adds to water pollution. Although meat consumption per person is falling in high income countries, it is increasing in low income countries. Fig. 1.1 shows the average daily calorie intake in Senegal, a west African country, and the US, by food groups in 2015. The recommended daily calorie intake is 2880. To react to changes in the kinds of food people eat, it helps if workers are mobile. In general, the higher labour mobility is, the more efficiently the labour market adapts to shifts in demand and in the supply of workers. This improves a country’s international performance in trade of goods. Because some people in Africa are malnourished, eating more food of any type, including meat, may improve their health. A rise in meat consumption will raise demand for vets (for animal welfare) and transport firms. It can also increase the number of meat processing firms. Senegal has a high unemployment rate and low income per head. It has recently seen a drop in consumer expenditure. New industries and new jobs would help prevent Senegal experiencing a recession. A rise in government spending may also be necessary. The high birth rate and growing population also put pressure on the government to spend more. However, emigration is reducing tax revenue while giving some Senegalese useful employment experience.