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The following table shows the price, in Canadian dollars (CAD), of dragon coins (DC), the currency used in the hypothetical economy of the Seven Kingdoms.
The following table shows the price, in Canadian dollars (CAD), of dragon coins (DC), the currency used in the hypothetical economy of the Seven Kingdoms. Assume that a system of flexible exchange rates is in place. The market for Canadian dollars and dragon coins QD of DC Price/Exchange Rate DC in CAD QS of DC 700 $1 500 600 2 600 500 3 700 400 4 800 Refer to Table 15-1. Which of the following is TRUE at an exchange rate of $3 CAD for one DC? a. There would be a shortage of dragon coins in the amount of 200 and 500 DC would be exchanged in the market. b. There would be a surplus of dragon coins in the amount of 200 and 500 DC would be exchanged in the market. c. There would be a surplus of dragon coins in the amount of 200 and 700 DC would be exchanged in the market. d. There would be a shortage of dragon coins in the amount of 200 and 700 DC would be exchanged in the market
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