If the demand for British pounds increases,
A) the equilibrium price of the pound will increase
B) the equilibrium price of the pound will decrease
C) the equilibrium price of the pound will not change
D) the equilibrium price of the pound will change,but we need additional information to predict the direction of the change
E) no one can predict what will happen

Question

Quizplus · Accepted Answer

According to the law of demand, as demand increases, the price will also increase. Therefore, an increase in demand for British pounds will result in an increase in the equilibrium price of the pound.

If the Demand for British Pounds Increases