If the price of the Brazilian real is 60 cents and a U.S. resident purchases a Brazilian-manufactured item for 60,000 real, there will be
A) a quantity demanded of 60,000 real and a quantity supplied of $60,000.
B) a quantity demanded of 60,000 real and a quantity supplied of $36,000.
C) a quantity demanded of 60,000 real, but we cannot determine the effect in the market for dollars.
D) a quantity supplied of 60,000 real and a quantity demanded of 60,000 yen.

Question

Quizplus · Accepted Answer

If the price of the Brazilian real is 60 cents, then 60,000 real is equal to $36,000 in U.S. currency. Therefore, the quantity demanded is 60,000 real and the quantity supplied is $36,000.

If the Price of the Brazilian Real Is 60 Cents