Figure 14.1 US market for Imported Toyotas -In Figure 14.1,D represents the US demand curve for Toyotas and MC₀ represents the marginal cost of producing Toyotas.A shift in the marginal cost curve from MC₀ to MC₁ represents A) an appreciation of the dollar relative to the yen B) an appreciation of the yen relative to the dollar C) a depreciation of the dollar relative to the yen D) neither an appreciation nor a depreciation of the dollar relative to the yen

Question

Quizplus · Accepted Answer

The Answer of Figure 14.1 US market for Imported Toyotas -In Figure 14.1,D represents the US demand curve for Toyotas and MC₀ represents the marginal cost of producing Toyotas.A shift in the marginal cost curve from MC₀ to MC₁ represents A) an appreciation of the dollar relative to the yen B) an appreciation of the yen relative to the dollar C) a depreciation of the dollar relative to the yen D) neither an appreciation nor a depreciation of the dollar relative to the yen

Figure 14.1 US Market for Imported Toyotas