Consider the following graph depicting the market for Euros Exchange is the price of the currency, D (or D) = quantity demanded, S( or S)= quantity supplied.

Table (Attached photo)

Supply (S): PA=2,QA=175 PB=3 , QB=245;

Demand:( D)PA=2,QA=200 PB=3 , QB=135;

Assuming that these are all linear relations, derive the 2 equations of the curves D and S (Hint: Linear equations).

Consider the curves D and S

Find the equilibrium exchange rate and the corresponding quantity of currency between D and S.

Now, suppose the exchange rate to be equal to $4.00/Fr. Find the quantities demanded (Q_D) and supplied (Q_S) at this exchange rate. What is the balance of payment deficit (surplus)?

Considering the above balance of payments imbalance in question b, what should happen to the currency to get back to equilibrium? Calculate the appreciation (Depreciation) rate necessary to cover this balance of payment.

Consider the following graph depicting the market for Euros Exchange is the price of the currency, D( or D)= quantity demanded, S(orS)= quantity supplied. And Supply(S):PA=2,QA=175PB=3,QB=245; Demand: (D)PA=2,QA=200PB=3,QB=135; 1- Assuming that these are all linear relations, derive the 2 equations of the curves D and S (Hint: Linear equations). 2- Consider the curves D and S a. Find the equilibrium exchange rate and the corresponding quantity of currency between D and S. b. Now, suppose the exchange rate to be equal to $4.00/Fr. Find the quantities demanded (Q0) and supplied (Qs) at this exchange rate. What is the balance of payment deficit (surplus)? c. Considering the above balance of payments imbalance in question b, what should happen to the currency to get back to equilibrium? Calculate the appreciation (Depreciation) rate necessary to cover this balance of payment. Consider the following graph depicting the market for Euros Exchange is the price of the currency, D( or D)= quantity demanded, S(orS)= quantity supplied. And Supply(S):PA=2,QA=175PB=3,QB=245; Demand: (D)PA=2,QA=200PB=3,QB=135; 1- Assuming that these are all linear relations, derive the 2 equations of the curves D and S (Hint: Linear equations). 2- Consider the curves D and S a. Find the equilibrium exchange rate and the corresponding quantity of currency between D and S. b. Now, suppose the exchange rate to be equal to $4.00/Fr. Find the quantities demanded (Q0) and supplied (Qs) at this exchange rate. What is the balance of payment deficit (surplus)? c. Considering the above balance of payments imbalance in question b, what should happen to the currency to get back to equilibrium? Calculate the appreciation (Depreciation) rate necessary to cover this balance of payment