Last Year,the World Demand Curve for Copper Shifted Rightward Due

question 28

Multiple Choice

Last year,the world demand curve for copper shifted rightward due to continued economic growth in China and other emerging economies.Also,the supply curve for copper shifted leftward due to strikes and other labor disruptions at some of the copper mines.As a result,we observed:

• A)higher equilibrium copper prices and unambiguously lower quantities.
• B)higher equilibrium copper prices and unambiguously higher quantities.
• C)higher equilibrium copper prices and either higher or lower quantities.
• D)lower equilibrium copper prices and either higher or lower quantities.

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Definitions:

Equity Multiplier

A financial ratio that measures the portion of a company's assets that are financed by shareholder's equity, providing insights into leverage.

Profit Margin

A financial performance ratio, calculated by dividing net income by sales revenue, indicating how much profit a company keeps from its sales.

ROE

Return on Equity (ROE) is a measure of financial performance calculated by dividing net income by shareholders' equity, indicating how effectively a company uses investments to generate earnings growth.

P/E Ratio

Price to Earnings Ratio, a valuation metric comparing a company's market share price to its per-share earnings.