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, one reason for the increase in Chinese demand for pecans was

Question

Quizplus · Accepted Answer

The application states that the increase in demand was caused in part by widespread reports in the Chinese media extolling the health benefits of pecans, indicating an increase in consumer preferences. A decrease in income (A) would likely result in a decrease in demand, while the expectation of higher future prices (B) may lead to an increase in demand in the short term, but not sustained increases like that seen in the pecan market. An increase in the price of walnuts (D), a substitute good, would lead to a decrease in demand for walnuts and possibly an increase in demand for pecans, but this is not the primary reason for the increase in demand for pecans.

Recall the Application About the Increase in Chinese Demand for Pecans