-The demand curve in Exhibit FF-1(A) slopes downward because
A) the higher the yen per dollar, the higher is the price of U.S.-made goods to the Japanese
B) the lower the yen per dollar, the higher is the price of U.S.-made goods to the Japanese
C) the higher the yen per dollar, the higher is the price of Japanese-made goods to U.S. citizens
D) the higher the yen per dollar, the higher is the price of U.S.-made goods to U.S. citizens
E) the higher the yen per dollar, the lower is the price of U.S.-made goods to the Japanese

Question

-The demand curve in Exhibit FF-1(A) slopes downward because
A) the higher the yen per dollar, the higher is the price of U.S.-made goods to the Japanese 
B) the lower the yen per dollar, the higher is the price of U.S.-made goods to the Japanese 
C) the higher the yen per dollar, the higher is the price of Japanese-made goods to U.S. citizens 
D) the higher the yen per dollar, the higher is the price of U.S.-made goods to U.S. citizens 
E) the higher the yen per dollar, the lower is the price of U.S.-made goods to the Japanese

Quizplus · Accepted Answer

As the yen per dollar increases, U.S.-made goods become more expensive for Japanese consumers, reducing demand, which is why the demand curve slopes downward.

-The Demand Curve in Exhibit FF-1(A) Slopes Downward Because