Qty of Libras Dollar Price Quantity of Libras

Demanded (Billions). of Libras Supplied (Billions)

100 $5 325

200 4 200

300 3 100

400 2 75

Answer the question on the basis of the following table, which indicates the dollar price of libras, the currency used in the hypothetical nation of Libra. Assume that a system of freely floating exchange rates is in place. Refer to the table. The exchange rate is

a. 4 libras for 1 dollar

b. 0.25 libra for 1 dollar

c. 0.40 libra for 1 dollar

d. 3 libras for 1 dollar