The following appeared in an announcement issued by the publisher of The Mercury, a weekly newspaper:
“Since a competing lower-priced newspaper, The Bugle, was started five years ago, The Mercury’s circulation has declined by 10,000 readers. The best way to get more people to read The Mercury is to reduce its price below that of The Bugle, at least until circulation increases to former levels. The increased circulation of The Mercury will attract more businesses to buy advertising space in the paper.”
The argument demonstrate that the Mercury circulation has declined by 100000 readers . The way to get more people to read the Mercury is to reduce its newspaper price below that of the Bugle , at least until circulation increases to former levels . The conclusion of the argument is based on assumptions that have no concrete evidences. However , the argument is seriously flawed and inconclusive and weak as it relies on the series of invalid assumptions .
First, a look at the argument major flaws, To begin with argument assumes that the 10,000 readers loss is because of Bugle . this is a unsupported assertion because loss of readers can be due of change in preferences such as now all the information available on internet without a cost so why people spend on newspaper or they can stop reading newspaper because they do not get time to read or may be they have financial issues in buying newspaper.
Secondly, the best way to get more people read the Mercury is to reduce its price below that of Bugle , again the argument is unconvincing and wrongly assumes that if Mercury reduce its price of newspaper then people start buying their newspaper . if Mercury decrease its newspaper price then people can assume in wrong direction that if price is low then the reduction is in its quality . There is market situation if price is low then demand is also low.
Lastly, the circulation of The Mercury will attract more businesses to buy advertising space in the paper . what if they reduce the price of newspaper and people start buying more. the argument here wrong assumes the relation of circulation and increase to attract business. what if people do not even see the business that advertise on newspaper , they simply buy newspaper for reading the newspaper and may be they have another work .Thus , the argument reveals example of leap of faith that are neither sound nor persuasive.
The inherent flaws and incomplete information make the argument dubious. Without the flaws referred to and with additional relevant information , argument would be strong . The reduction of prices of Mercury newspaper perhaps not be the best of options. The argument relies on assumption for which there is no clear evidences. Therefore , overall the argument is seriously flaws and inconclusive and if the advice is followed it may lead to more adverse consequences.