The Figure Given Below Depicts the Foreign Exchange Market for British

Multiple Choice

The figure given below depicts the foreign exchange market for British pounds traded for U.S. dollars.Figure 22.2

-Refer to Figure 22.2. Suppose S₁ is the initial supply curve and the British demand for U.S. manufactured computers decreases. Then, with flexible exchange rates:

A) the price per British pound decreases by $0.10 and the quantity of British pounds increases by 50.
B) the price per British pound decreases by $0.10 and the quantity of British pounds decreases by 50.
C) the price per British pound increases by $0.15 and the quantity of British pounds decreases by 50.
D) the price per British pound increases by $0.15 and the quantity of British pounds decreases by 75.
E) the price per British pound and the quantity of British pounds remain unchanged.