Question: Consider survey data to estimate the demand for a new safer pesticide to be used in farming. Some farmers demand zero at the going price,

Consider survey data to estimate the demand for a new safer pesticide to be used in farming. Some farmers demand zero at the going price, while some demand positive pounds per acre. Is this a good candidate for a Tobit model?

A. No. There is no data censoring issue because farmers will use none of the new pesticide.

B. Yes. There is no data censoring issue because all farmers will use the new pesticide.

C. Yes. There is no data censoring here because some farmers simply find it optimal to use none of the new pesticide.

D. No. There is a data censoring issue because all farmers will use the new pesticide.

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