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Use the Following Figure Showing the Supply Of, and Demand

Question 46

Multiple Choice

Use the following figure showing the supply of, and demand for, Israeli new shekels by holders of U.S. dollars.
Use the following figure showing the supply of, and demand for, Israeli new shekels by holders of U.S. dollars.    -If the dollar price per new shekel were $0.50, there would be a: A)  surplus of new shekels on the market and the dollar price per new shekel would fall. B)  surplus of new shekels on the market and the dollar price per new shekel would rise. C)  shortage of new shekels on the market and the dollar price per new shekel would fall. D)  shortage of new shekels on the market and the dollar price per new shekel would rise.
-If the dollar price per new shekel were $0.50, there would be a:


A) surplus of new shekels on the market and the dollar price per new shekel would fall.
B) surplus of new shekels on the market and the dollar price per new shekel would rise.
C) shortage of new shekels on the market and the dollar price per new shekel would fall.
D) shortage of new shekels on the market and the dollar price per new shekel would rise.

Correct Answer:

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