Question

How would a decline in demand for imported commodities by the Chinese affect the market for cargo transportation to China? Demand for cargo transportation shifts to the left causing a decline in quantity supplied and price. Supply of cargo transportation shifts to the right causing an increase in quantity demanded and decline in equilibrium price. Supply of cargo transportation shifts to the right causing an increase in demand and equilibrium quantity and a decrease in equilibrium price. Demand for cargo transportation shifts to the left causing a decline in supply and equilibrium quantity and price.

Answer 1

Demand for cargo transportation shifts to the left causing a decline in quantity supplied and price.

Step-by-step explanation:

As the demand for imported commodities decline in the Chinese market, the quantity of commodities shipped will decline. This will adversely affect the market for Cargo transportation to China. The demand for Cargo transportation to China will decline. This will cause it's demand curve to shift to the left. This leftward shift will cause both equilibrium quantity as well as equilibrium price to decline.