For Each of the Following,state Whether It Creates a Demand

question 8

Short Answer

For each of the following,state whether it creates a demand for or supply of Canadian dollars:
(a)A Japanese automobile firm builds an assembly plant in Manitoba.
(b)A Canadian importer purchases a shipload of Saudi Arabia oil.
(c)A Canadian student spends a summer in England studying in Oxford.
(d)A French exporter ships products to Argentina using a Canadian freighter.
(e)Currency traders feel that the value of the Canadian dollar will fall in the near future and act on that feeling.

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Definitions:

Pure Monopoly

A market structure wherein a single company or entity exclusively supplies a particular product or service, facing no competition.

Allocative Efficiency

A state of resource allocation in which it is impossible to make one individual better off without making at least one individual worse off.

Short Run

A term in economics referring to a time frame in which certain resources, particularly capital, are fixed and cannot be adjusted.

Socially Optimal Price

The price point at which the social welfare (total benefits to society) is maximized, often considered when analyzing the impact of public goods or services.