The government of Penglai, an isolated island, proposed eliminating outdoor advertising except for small signs of standard shape that identify places of business.
Merchants' Conclusion
The law that would eliminate outdoor advertising (other than small standardized signs) would reduce the overall volume of business in Penglai.
Merchants' Evidence
In every industry on Penglai, the businesses that used outdoor advertising had a larger market share than those that did not.
Evaluate
The evidence is a correlation: people who had Trait A had more Trait B than those who did not have Trait A.
So we know that outdoor advertising is correlated with larger market share.
Are the merchants assuming this is a causal connection, that outdoor advertising causes more market share?
Yes, they seem to be thinking that, because they are suggesting that the elimination of outdoor advertising will have a causal effect on business.
When an author assumes that a correlation between X and Y means that X causes Y, we respond with two automatic thoughts: 1. could it be reverse cause? could Y cause X? 2. could there be some third factor? could Z cause X and Y?
#1 seems plausible. Maybe the larger market share came first, and because those businesses were successful, they (and not the businesses are with the smaller market share) could actually afford outdoor advertising.
#2 is possible. Maybe the businesses most likely to use outdoor advertising have beautiful people that work there, and maybe having beautiful people work at a business causes it to be more successful and have a bigger market share. (This is a dumb story, but just an example)
Goal
Let's look for an answer calling out this Correlation to Causality move (that is one of the top 10 Famous Flaws).
Or look for an answer that would otherwise help us argue that .