Refer to the information provided in Figure 20.4 below to answer the questions that follow.
Figure 20.4
-Refer to Figure 20.4.The demand and supply of pounds are D1 and S1.If the supply shifts to S2 and demand remains unchanged at D1
A) the dollar depreciates and the equilibrium quantity of pounds increases.
B) the dollar depreciates and the equilibrium quantity of pounds decreases.
C) the dollar appreciates and the equilibrium quantity of pounds decreases.
D) the dollar appreciates and the equilibrium quantity of pounds increases.
Correct Answer:
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