Question

plz explain this☝️☝️

Answer 1

change in equilibrium of exchange rate

Explanation:

• Exchange rate shoes us the demand and supply of two currency are equal at one price and this is called exchange rate of these two currencies.

• The chart shows us the change of demand and supply of a currency and its effect on the price of currency.

• when the demand for dollar goes up from D to D1 the exchange rate can be seen going up from p0 to p1 . and then the supply of dollars would go up from q1 to q2. and the equalibrim shifts from E0 to E1.

• when the supply for dollar goes down from S to S1 the exchange rate can be seen going Dowm from p0 to p2 . and the equalibrim shifts from E0 to E2.

Answer 2

change in equilibrium of exchange rate

Exchange rate shoes us the demand and supply of two currency are equal at one price and this is called exchange rate of these two currencies.

The chart shows us the change of demand and supply of a currency and its effect on the price of currency.

when the demand for dollar goes up from D to D1 the exchange rate can be seen going up from p0 to p1 . and then the supply of dollars would go up from q1 to q2. and the equalibrim shifts from E0 to E1.

when the supply for dollar goes down from S to S1 the exchange rate can be seen going Dowm from p0 to p2 . and the equalibrim shifts from E0 to E2.

hope it helps u