The figure below shows the demand (D) and supply (S) curves of cocoa in the U.S.Figure 21.4

-An upward-sloping supply curve of Korean won in terms of Canadian dollars indicates that:
A)the higher the dollar price of Korean won, the more won will be demanded.
B)the higher the dollar price of Korean won, the fewer won will be supplied.
C)the lower the dollar price of Korean won, the more won will be demanded.
D)the lower the dollar price of Korean won, the fewer won will be supplied.
E)the Korean economy is stronger than the Canadian economy.

Question

The figure below shows the demand (D) and supply (S) curves of cocoa in the U.S.Figure 21.4
 
-An upward-sloping supply curve of Korean won in terms of Canadian dollars indicates that:
A)the higher the dollar price of Korean won, the more won will be demanded. 
B)the higher the dollar price of Korean won, the fewer won will be supplied. 
C)the lower the dollar price of Korean won, the more won will be demanded. 
D)the lower the dollar price of Korean won, the fewer won will be supplied. 
E)the Korean economy is stronger than the Canadian economy.

Quizplus · Accepted Answer

An upward-sloping supply curve indicates that as the price increases, the quantity supplied also increases. Therefore, if the dollar price of Korean won decreases, fewer won will be supplied, as suppliers are less willing to exchange their currency at lower prices.

The Figure Below Shows the Demand (D) and Supply (S)