-The graph illustrates the market for British pounds,the currency of the United Kingdom.As the number of buyers of pounds increases and the number of sellers of pounds increases,the equilibrium price of a pound
A) will rise.
B) will fall
C) will remain the same.
D) might rise, fall, or remain the same depending on whether the effect on buyers is larger than, less than, or the same as the effect on sellers.
E) None of the above answers is correct.

Question

-The graph illustrates the market for British pounds,the currency of the United Kingdom.As the number of buyers of pounds increases and the number of sellers of pounds increases,the equilibrium price of a pound
A) will rise. 
B) will fall 
C) will remain the same. 
D) might rise, fall, or remain the same depending on whether the effect on buyers is larger than, less than, or the same as the effect on sellers. 
E) None of the above answers is correct.

Quizplus · Accepted Answer

When both the number of buyers and sellers in a currency market increases, the effect on the equilibrium price depends on the relative change in demand and supply. If the increase in buyers (demand) is larger than the increase in sellers (supply), the price will rise. If the increase in sellers is larger, the price will fall. If both increase equally, the price might remain the same.

-The Graph Illustrates the Market for British Pounds,the Currency of the United