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.

Question

Quizplus · Accepted Answer

A decline in demand for imported commodities by China would lead to a decrease in demand for cargo transportation to China, shifting the demand curve to the left, resulting in a lower quantity supplied and a decrease in price.

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