In a graph showing the market supply and demand for British pounds in terms of U.S. dollars, the demand-for-pounds curve is downsloping because
A) fewer British pounds can be purchased if pounds become less expensive.
B) fewer U.S. dollars can be purchased if British pounds become less expensive.
C) more U.S. dollars can be purchased if British pounds become more expensive.
D) more British pounds can be purchased if pounds become less expensive.

Question

Quizplus · Accepted Answer

The demand-for-pounds curve is downsloping because as the price of British pounds decreases (making pounds less expensive), more pounds can be purchased with a given amount of U.S. dollars, increasing the quantity demanded of British pounds.

In a Graph Showing the Market Supply and Demand for British