How Would a Decline in Demand for Imported Commodities by the Chinese

question 82

Multiple Choice

How would a decline in demand for imported commodities by the Chinese affect the market for cargo transportation to China?

• A) Supply of cargo transportation shifts to the right causing an increase in quantity demanded and decline in equilibrium price.
• B) Supply of cargo transportation shifts to the right causing an increase in demand and equilibrium quantity and a decrease in equilibrium price.
• C) Demand for cargo transportation shifts to the left causing a decline in quantity supplied and price.
• D) Demand for cargo transportation shifts to the left causing a decline in supply and equilibrium quantity and price.

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Definitions:

Primary Market Transaction

The initial issuance and sale of securities directly from the issuer to investors, distinguishing from secondary market transactions where securities are bought and sold among investors.

IPO

Initial Public Offering, the process by which a private company becomes publicly traded by offering its shares for sale to the general public for the first time.

Public

Relating to or involving the people as a whole; often used to describe companies whose shares are available to be bought and sold by the general population.

Agency Costs

Expenses stemming from conflicts of interest between parties in a corporation, especially between owners and managers.