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Because the quantity of euros demanded at this price is greater or less than the quantity supplied, there would shortage or surplus.

The following graph depicts the supply schedule for euros (orange line) and the demand schedule for euros (blue line). Use the black point (cross symbol) to plot the point corresponding to the equilibrium exchange rate and quantity of euros. At an exchange rate of 1.6 per euro, the quantity of euros supplied is while the quantity of euros demanded is Because the quantity of euros demanded at this price is than the quantity supplied, there would be a