What Level Will the World Price of a Commodity Settle

question 121

Multiple Choice

What level will the world price of a commodity settle at?

• A)where there is no excess demand in the exporting country
• B)where supply and demand are equal within each country
• C)where the excess demand in the exporting country is equal to the excess demand in the importing country
• D)where the excess demand of the importing country is just equal to the excess supply of the exporting country

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Definitions:

Cash Dividends

A distribution of profits by a corporation to its shareholders in the form of cash.

Operating Activities

Transactions and other events related to the day-to-day function of a business, typically involving revenue and expense activities directly affecting cash flow.

Investments In Securities

Financial assets such as stocks, bonds, or mutual funds purchased with the intent of generating income or appreciating in value.

Operating Activities

Activities that relate to a company's primary business operations, such as selling goods or services, which are reflected in its cash flow statement.