CASE 3: Suppose that you are managing the forex bureau of a bank that faces a perfectly competitive market comprising of 18 identical commercial banks. Suppose, further, that the market demand (Qd) for US dollars and the supply (Qs) functions for the same are given below:

Qd=170,000,000-2,000,000P

Qs=70,000,000+500,000P

i.Calculate the equilibrium market price and quantity of US dollars?

ii.Given your answer in (i), how much foreign currency will be supplied by each bank in the industry?