PART II. Long Problem: Quinoa Quinoa is a cereal crop grown on the Altiplano, a high barren plateau in the Andes of South America. It is a traditional staple food in Peru and Bolivia. In recent years, as its nutritional properties have become known, there has been a huge increase in demand from richer, health-conscious consumers in Europe and North America. Figures 1 - 3 show how the market changed. You can see that between 2001 and 2011, the price of quinoa trebled and production almost doubled. Figure 3 indicates the strength of the increase in demand: spending on imports of quinoa rose from just 52.4 million to $43.7 million in 10 years. 1. Why for the producer countries these changes are a \"mixed blessing"? 2. Suppose there was an unexpected increase in demand for quinoa in the early20005. What would you expect to happen to the price and quantity initially? 3. Assuming that demand continued to rise over the next few years, how do you think farmers responded? 4. Why did the price stay constant until 2007? 90 I Ecuador I Peru I Bolivia Production of quinoa (thousands of tonnes) 2001 2003 2005 2007 2009 2011 Year