Question: A significant portion of almonds produced in the U.S. are exported to China. The recent trade war between China and U.S. will reduce the amount

A significant portion of almonds produced in the U.S. are exported to China. The recent trade war between China and U.S. will reduce the amount of exports of almonds to China. The direct consequence is that the domestic price of almonds in the U.S. will drop. The price of almond without the trade war was around 2.2 USD/lb. Assuming the trade war will cause the price to drop to 2 USD/lb. Without the trade war the per capita almond consumption was 1.6 lbs/year. The price elasticity of demand for almonds is -0.6. What would be the new consumption level with the trade war?

Step by Step Solution

★★★★★

3.41 Rating (157 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

The height (in inches) of males in the United States is believed to be Normally distributed. The average height of a random sample of 50 American adult males is 69.72 inches and the standard...

What would be the new stock price if CD recapitalizes with $250,000 of debt? $500,000? $750,000? $1,000,000? Recall that the payout ratio is 100%, so g = 0.

Hello can you please help with this case study, that's an exercice given by the teacher in order for us to get ready for the mid-term, he said he is going to give something like that, so we should...

please can you please help me with this case in order for me to get prepared for my midterm. this is not a homework, its a case given by the professor for us to get ready for the upcoming exam...

QUESTION: With reference to the article in question, critically assess the impact and potential impact of the ongoing Russia-Ukraine conflict on the economies of developing countries like Jamaica....

How did China's economy perform during the first decade of the 2000s? How did joining the WTO contribute to China's economic performance? What economic issues led Wen Jiabao to revise China's...

chapter 6 \" International Management It was once said that the sun never set on the British Empire. Today, the sun does set on the British Empire, but not on the scores of global empires, including...

Hello Sir, Could you please assist this project urgently. I have to submit it by sunday. UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K x Annual Report Pursuant to...

Question 1: Hex Ltd is considering several plant improvements and has allocated $880,000 for this investment. The following options / projects are under consideration. Assume that the net annual cash...

Riverside Growers Corp manufactures garden tools in a factory in Taneytown, Maryland. Recently, the company designed a collection of tools for professional use rather than consumer use. Management...

Complete the cost card based on the following budgeted data for 8,000 units: Sales 350,000 Direct labour (10 per hour) 40,000 Direct materials (11.25kgs per unit) 180,000 Variable production cost...

Consider a set of samples {x1, x2,...,xN} that are independent and identically distributed (i.i.d.) according to a Gaussian distribution p(xi) = G (x;; , o), where i = 1, 2,..., N. Recall that the...

In both of the functions for this exercise, you used the double-accumulator pattern to produce the result. In one case it was to produce a list of numbers, and in another case it was to produce a...

Nakul works at a bank and has been tasked with reducing the number of invalid checks accepted by bank tellers (e.g., checks without a signature or a date). Nakul researches the problem, generates...

Johnson Incorporated is a job - order manufacturing company that uses a predetermined overhead rate based on direct labor hours to apply overhead to individual jobs. For the current year, estimated...

Periwinkle Company is a multinational organization. Its Parts Division is located in Lavender Land, while its Assembly Division is located in North Orchid. During the current year Periwinkle Companys...

The UK has not joined the monetary union. How has this decision affected business? Switzerland has also not joined the monetary union. Is the effect of its decision different from a nation with an...

Consider a study of doing business in Mexico. How do the economic, cultural, social, and political climates affect a business there? Describe Mexicos form of government. How are business relations...

Who are the members of a firms export team? Describe each of their functions.

The Insurance Institute for Highway Safety regularly tests cars for various safety factors. In one such test, the institute tests the bumpers in 5-mile per hour (mph) crashes. The following data...

In Problems, assume that the data come from populations that are normally distributed with the same variance. (a) Determine whether there is significant interaction between factor A and factor B. (b)...

An obstetrician wanted to determine the impact that three experimental diets had on the birth weights of pregnant mothers. She randomly selected 27 pregnant mothers in the first trimester of whom 9...