Refer to the information provided in Figure 19.4 below to answer the questions that follow.
Figure 19.4
-Refer to Figure 19.4. The demand and supply of pounds are D2 and S2. If the supply shifts to S1 and demand remains unchanged at D2
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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