-The figure above shows the demand and supply of dollars in the foreign exchange market. The equilibrium in the market occurs at a price of ________ Brazilian reals per dollar and a quantity of ________ billion dollars.
A) 2.0; 100
B) 2.4; 120
C) 1.6; 100
D) 100; 2.0

Question

-The figure above shows the demand and supply of dollars in the foreign exchange market. The equilibrium in the market occurs at a price of ________ Brazilian reals per dollar and a quantity of ________ billion dollars.
A) 2.0; 100 
B) 2.4; 120 
C) 1.6; 100 
D) 100; 2.0

Quizplus · Accepted Answer

The equilibrium price is the price at which the quantity demanded equals the quantity supplied. In this case, the equilibrium price is 2.0 Brazilian reals per dollar. The equilibrium quantity is the quantity that is demanded and supplied at the equilibrium price. In this case, the equilibrium quantity is 100 billion dollars.

-The Figure Above Shows the Demand and Supply of Dollars