-The figure above shows the demand and supply of dollars in the foreign exchange market. At a price of 1.20 Brazilian reals per dollar
A) there will be a shortage of dollars.
B) $120 billion dollars will be supplied.
C) $40 billion dollars will be demanded.
D) there will be a surplus of dollars.

Question

-The figure above shows the demand and supply of dollars in the foreign exchange market. At a price of 1.20 Brazilian reals per dollar
A) there will be a shortage of dollars. 
B) $120 billion dollars will be supplied. 
C) $40 billion dollars will be demanded. 
D) there will be a surplus of dollars.

Quizplus · Accepted Answer

At a price of 1.20 Brazilian reals per dollar, the quantity of dollars demanded exceeds the quantity supplied, leading to a shortage of dollars.

-The Figure Above Shows the Demand and Supply of Dollars