Refer to the information provided in Figure 34.4 below to answer the question(s) that follow. Figure 34.4
-Refer to Figure 34.4. The demand and supply of pounds are D₂ and S₂. If the supply shifts to S₁ and demand remains unchanged at D₂

Question

Refer to the information provided in Figure 34.4 below to answer the question(s) that follow.

Figure 34.4
-Refer to Figure 34.4. The demand and supply of pounds are D₂ and S₂. If the supply shifts to S₁ and demand remains unchanged at D₂

Quizplus · Accepted Answer

When the supply shifts from S2 to S1, it indicates an increase in supply. With demand remaining unchanged, this leads to a lower price for pounds (dollar appreciates) and an increase in the equilibrium quantity of pounds.

Refer to the Information Provided in Figure 34