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?

Question

Quizplus · Accepted Answer

When demand increases, both the equilibrium price and quantity increase because the demand curve shifts to the right, leading to a higher price and quantity where the new demand curve intersects the supply curve.

Recall the Application About the Increase in Chinese Demand for Pecans