Recall the Application About the Increase in Chinese Demand for Pecans

question 198

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.
-According to the Application,which of the following would we observe in the market for pecans as a result of an increase in the demand for pecans?

• A) a higher equilibrium price and a higher equilibrium quantity
• B) a lower equilibrium price and a lower equilibrium quantity
• C) a lower equilibrium price and a higher equilibrium quantity
• D) a higher equilibrium price and a lower equilibrium quantity

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Definitions:

Bushels

Bushels are a measure of volume used primarily in agriculture, especially in the United States, for dry commodities such as grains or produce.

Confidence

In statistics, the degree of certainty or probability that a parameter lies within a specified range of values.

Insecticide

A chemical substance used to kill insects.

Median Difference

The middle value separating the higher half from the lower half of a data set's difference distribution.