Draw a standard supply and demand diagram for the global soybean market that has a market equilibrium price of $9 per bushel and market equilibrium quantity of 125 million bushels. Next, rising household income in India and China impacts the demand for soybeans which are a normal good. If so, which of the outcomes below could be the new global equilibrium in soybean market?

Question 12 options:

a)

P=$8, Q = 110 million bushels

b)

P=$10, Q = 115 million bushels

c)

P=$7.50, Q = 150 million bushels

d)

P=$11, Q = 135 million bushels