Consider the Global Market for Barley,an Agricultural Commodity

question 127

Multiple Choice

Consider the global market for barley,an agricultural commodity.Suppose that in August,2014,the equilibrium price and quantity were P = $150 per tonne and Q = 350 million tonnes.In August,2015,the equilibrium price and quantity were P = $168 per tonne and Q = 350 million tonnes.Which of the following is the best possible explanation for this change in market equilibrium?

• A)There has been an increase in demand for barley.
• B)There has been a decrease in supply of barley.
• C)There has been a decrease in demand for barley.
• D)There has been a simultaneous decrease in demand and increase in supply of barley.
• E)There has been a simultaneous increase in demand and decrease in supply of barley.

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Definitions:

Process Capability Index

A statistical measure of process capability, indicating how well a process can meet specified performance standards.

Design Specifications

Detailed descriptions of materials, dimensions, and processes used in the construction of a product.

P-chart

A type of control chart used for monitoring the proportion of defective items in a process over time.

Control Limits

Boundaries in statistical process control that indicate the thresholds for when a process is in or out of control.