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Consider two similar restaurants in close proximity to each other on either side of the U.S.-Mexico border. Suppose the dollar appreciates against the peso. The

Consider two similar restaurants in close proximity to each other on either side of the U.S.-Mexico border. Suppose the dollar appreciates against the peso. The following graph shows the supply and demand curves for meals at the restaurant on the U.S. side of the border.

O

n the following graph, shift either the supply curve or the demand curve to represent the effect of the appreciation of the dollar against the peso on the market for meals at the restaurant on the U.S. side of the border.

The dollar appreciation helps: the US restaurant owner or cusotmers?

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