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The graph below depicts the international market for the Canadian dollar (price in terms of the U.S. dollar). Qx.tity of a) Agunn[ng that the n-zrket

The graph below depicts the international market for the Canadian dollar (price in terms of the U.S. dollar).

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Qx.tity of a) Agunn[ng that the n-zrket In egulllnum. that the demand Increased by 520 (blfl[on). v,fnlle the guppy of Sollarg Increased by SIO Draw the new demand and supply labelled 02 and S2 [n the graph. Plot only the endpoVntE of the curve above and gosltlon tf-os.e points on the edges of the graphlng BJ What IE the new equnlbrlum prlce of the dollar art the new guantry traded? Rout-d your answers to 2 decVmaI place-g_ Price: S G uantit;r. S bl[llon_ c' Suppose that the Bank of had fixed the value of the dollar at Its grevlous equll'rlum level go that no one wag Qllowed to trade CanadLan dollar; at any other once. What would be the result from the In demand and supply? bll'lon_

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