-Using the above figure, which of the following is CORRECT?
A) 1 guilder will sell for $2.
B) 1 dollar will sell for 1/2 guilder.
C) A shortage of guilders exists at an exchange rate above $0.60.
D) A surplus of guilders exists at an exchange rate above $0.60.

Question

-Using the above figure, which of the following is CORRECT?
A) 1 guilder will sell for $2. 
B) 1 dollar will sell for 1/2 guilder. 
C) A shortage of guilders exists at an exchange rate above $0.60. 
D) A surplus of guilders exists at an exchange rate above $0.60.

Quizplus · Accepted Answer

At an exchange rate above $0.60, the quantity of guilders supplied exceeds the quantity demanded, leading to a surplus of guilders.

-Using the Above Figure, Which of the Following Is CORRECT