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The Table Indicates the Dollar Price of Libras, the Currency

Question 28

Multiple Choice

 (1)   (2)   (3)   Quantity of Libras  Demanded (Billions)   Dollar Price  of Libras  Quantity of Libras  Supplied (Billions)  100$532520042003003100400275\begin{array} { | c | c | c | } \hline \text { (1) } & \text { (2) } & \text { (3) } \\\hline \begin{array} { c } \text { Quantity of Libras } \\\text { Demanded (Billions) }\end{array} & \begin{array} { c } \text { Dollar Price } \\\text { of Libras }\end{array} & \begin{array} { c } \text { Quantity of Libras } \\\text { Supplied (Billions) }\end{array} \\\hline 100 & \$ 5 & 325 \\\hline 200 & 4 & 200 \\\hline 300 & 3 & 100 \\\hline 400 & 2 & 75 \\\hline\end{array} The table indicates the dollar price of libras, the currency used in the hypothetical nation of Libra. Assume that a system of ?exible exchange rates is in place. The equilibrium dollar price of libras is


A) $5.
B) $4.
C) $3.
D) $2.

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