Exhibit 20-4 Imagine that there are only two nations in the world, Canada and Switzerland.Which of the following is true of the suppliers and demanders in this market, as represented in Exhibit 20-4?

Question

Exhibit 20-4  Imagine that there are only two nations in the world, Canada and Switzerland.Which of the following is true of the suppliers and demanders in this market, as represented in Exhibit 20-4?

Quizplus · Accepted Answer

In the given exhibit, the vertical axis represents the exchange rate of Canadian dollars and Swiss francs. The horizontal axis represents the quantity of Canadian dollars and Swiss francs. The demanders and suppliers are represented by the points on the graph. In this case, the demanders are the ones who want Canadian dollars and the suppliers are the ones who want Swiss francs. Therefore, the suppliers want Canadian dollars and are offering Swiss francs, which is option B.

Exhibit 20-4 Imagine That There Are Only Two Nations