Figure 13.1. U.S. Market for Imported Toyotas

Multiple Choice

Figure 13.1. U.S. market for Imported Toyotas
-In Figure 13.1, D represents the U.S.demand curve for Toyotas and MC₀ represents the marginal cost of producing Toyotas.A shift in the marginal cost curve from MC₀ to MC₁ represents

A) an appreciation of the dollar relative to the yen.
B) an appreciation of the yen relative to the dollar.
C) a depreciation of the dollar relative to the yen.
D) neither an appreciation nor a depreciation of the dollar relative to the yen.