The currency used in the Duchy of Saxony is the ducet.The demand for the Saxonian ducet in the foreign exchange market equals 14,000 - 3,000e and the supply of ducets in the foreign exchange market equals 2,000 + 2,000e,where e is the nominal exchange rate expressed in dollars per ducet.The market equilibrium value of ducet is _________ ducets per dollar or _________ dollars per ducet.
A) 0.417;2.4
B) 2.4;0.417
C) 12;0.083
D) 0.083;12
E) 7;0.143
Correct Answer:
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