Recall the Application About the Increase in Chinese Demand for Pecans

question 52

Multiple Choice

Recall the Application about the increase in Chinese demand for pecans to answer the following question(s) . Between 2006 and 2009, Chinese imports of U.S. pecans increased from 9 million pounds per year to 88 million pounds per year, and as a result of the increase in demand, the equilibrium price increased by about 50 percent. The increase in demand was caused in part by widespread reports in the Chinese media extolling the health benefits of pecans.
-Recall the Application. The equilibrium price of pecans increased because the demand curve shifted

• A) up and to the right.
• B) down and to the left.
• C) down and to the right.
• D) up and to the left.

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Definitions:

Working Capital

Current assets minus current liabilities, indicating the short-term liquidity of a company and its ability to pay off its obligations.

Short-Term Credit

Short-Term Credit refers to loans or lines of credit that are to be repaid within a short period, typically less than one year, used for immediate cash flow needs.

Seasonal Business

A business that experiences significant variations in demand and activity levels based on the season or time of year.

Working Capital Financing

Short-term financing used to finance the day-to-day operations of a business, specifically its current assets and liabilities.