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

question 72

Essay

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

---

Definitions:

Market Price

The current price at which an asset or service can be bought or sold, determined by supply and demand dynamics in the market.

Equilibrium Price

The market price at which the quantity of a good or service supplied is equal to the quantity demanded, leading to market balance.

Market Price

The amount of money that a product is bought or sold for in the marketplace; determined by supply and demand.

Surplus

A situation where the quantity supplied of a good exceeds the quantity demanded, often leading to lower prices or stored inventory.