Recall the Application About the Increase in Chinese Demand for Pecans

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

A) a decrease in income.
B) the expectation of higher future prices.
C) an increase in consumer preferences.
D) an increase in the price of walnuts, a substitute good.

Correct Answer:

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