A significant portion of almonds produced in the U.S. are exported to China. The recent trade war
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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?
Related Book For
International Business Law and Its Environment
ISBN: 978-0324649659
7th Edition
Authors: Richard schaffer, Filiberto agusti, Beverley earle
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