3) Consider the supply-demand framework for the British pound relative to the U.S. dollar shown in the chart. The equilibrium exchange rate based on both the supply (S) and the demand (D) is $1.90/. Please ignore the demand curve D. However, if the current market exchange rate is $1.80/, does the U.S experience the trade deficit or surplus with the U.K. Moreover, explain your answer based on both the demand and the supply for the pound. (30points