Suppose the price of the dollar falls from 150 to 120 yen.As a result,Japanese purchases of $35,000 Cadillacs rise from 2,000 to 2,100 per year.This is the kind of event underlying the reason for drawing

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When the price of the dollar falls, meaning it takes fewer yen to buy a dollar, Japanese demand for American goods (in this case, Cadillacs) increases. This illustrates the law of demand, where a decrease in price leads to an increase in quantity demanded, hence justifying the drawing of a downward-sloping demand curve for dollars.

Suppose the Price of the Dollar Falls from 150 to 120