Select the letter of the diagram in Figure 28.1 that best represents the effect of each event on the United States wheat market, ceteris paribus: The dollar increases in value in the foreign exchange markets.(See Figure 29.4.)

Question

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Event of the increase in dollar value will make US exports more expensive for foreign buyers, decreasing their demand for US wheat. This will lead to a decrease in quantity demanded (shift to the left) and a decrease in equilibrium price, as shown in diagram C.

Select the Letter of the Diagram in Figure 28