If British tastes changed so that Britons began to desire more American goods,there would be
A) a rightward movement along the supply of British pounds curve in the dollar-pound market
B) a leftward movement along the supply of British pounds curve in the dollar-pound market
C) a rightward shift of the supply of British pounds curve in the dollar-pound market
D) a leftward shift of the supply of British pounds curve in the dollar-pound market
E) no change in the supply of British pounds curve in the dollar-pound market

Question

Quizplus · Accepted Answer

If Britons desire more American goods, they will need more dollars to purchase these goods, leading to an increase in the supply of British pounds in the dollar-pound market as they exchange pounds for dollars. This results in a rightward shift of the supply curve.

If British Tastes Changed So That Britons Began to Desire