percent change in average global market prices by commodity in two agricultural trade-reform scenarios

which choice most effectively uses data from the table to support the students claim?
a under the tariff-removal scenario, the average prices of milk products, coarse grains, and fruits and vegetables would decrease by more than 1%, while the average price of sugar would decrease by less than 1%.
b under the tfa scenario, the average prices of all four commodities would decrease, whereas under the tariff-removal scenario, only the average price of milk products would decrease.
c under the tfa scenario, the average price of sugar would decrease by a smaller amount than any of the other three commodities prices would, whereas its average price would increase under the tariff-removal scenario.
d under the tariff-removal scenario, the average price of milk products would increase, but the average prices of coarse grains and sugar would decrease.
ratified in 2017 by two-thirds of world trade organization member nations, the trade facilitation agreement (tfa) is a trade-reform measure that aims to reduce redundant customs procedures and other costly aspects of international trade. in a 2021 report, economist jayson beckman modeled global market prices of several agricultural commodities under both the tfa and an alternative trade-reform scenario: removal of agricultural tariffs (taxes on imports that generally increase prices on imported goods). after reviewing data from the report, a student concludes that overall, consumers of the commodities listed in the table would likely benefit more from the tfa than they would from tariff removal.

Question

percent change in average global market prices by commodity in two agricultural trade-reform scenarios

which choice most effectively uses data from the table to support the students claim?
a under the tariff-removal scenario, the average prices of milk products, coarse grains, and fruits and vegetables would decrease by more than 1%, while the average price of sugar would decrease by less than 1%.
b under the tfa scenario, the average prices of all four commodities would decrease, whereas under the tariff-removal scenario, only the average price of milk products would decrease.
c under the tfa scenario, the average price of sugar would decrease by a smaller amount than any of the other three commodities prices would, whereas its average price would increase under the tariff-removal scenario.
d under the tariff-removal scenario, the average price of milk products would increase, but the average prices of coarse grains and sugar would decrease.
ratified in 2017 by two-thirds of world trade organization member nations, the trade facilitation agreement (tfa) is a trade-reform measure that aims to reduce redundant customs procedures and other costly aspects of international trade. in a 2021 report, economist jayson beckman modeled global market prices of several agricultural commodities under both the tfa and an alternative trade-reform scenario: removal of agricultural tariffs (taxes on imports that generally increase prices on imported goods). after reviewing data from the report, a student concludes that overall, consumers of the commodities listed in the table would likely benefit more from the tfa than they would from tariff removal.

Accepted Answer

# Brief Explanations:
- **Option A**: Incorrect. In the tariff - removal scenario, the average prices of milk products ($-0.30\%$), coarse grains ($+0.81\%$), and fruits and vegetables ($+0.04\%$) do not all decrease.
- **Option B**: Incorrect. In the tariff - removal scenario, the average price of milk products ($-0.30\%$) decreases, but also coarse grains ($+0.81\%$) and fruits and vegetables ($+0.04\%$) do not decrease.
- **Option C**: Correct. In the TFA scenario, sugar has a percent change of $-0.74\%$, which is a smaller decrease compared to coarse grains ($-1.35\%$), fruits and vegetables ($-1.50\%$), and milk products ($-1.48\%$). In the tariff - removal scenario, sugar has a percent change of $+0.37\%$ (increase).
- **Option D**: Incorrect. In the tariff - removal scenario, the average price of milk products ($-0.30\%$) decreases, not increases.

# Answer:
C. Under the TFA scenario, the average price of sugar would decrease by a smaller amount than any of the other three commodities' prices would, whereas its average price would increase under the tariff - removal scenario.

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