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This is a graph of the foreign exchange market. The y-axis is labeled Exchange Rate (euros per dollar), and the x-axis is labeled Quantity of

This is a graph of the foreign exchange market. The y-axis is labeled Exchange Rate (euros per dollar), and the x-axis is labeled Quantity of dollars traded. There are two parallel downward-sloping demand curves, labeled D_{1} and D_{2}*D_{1} is above and to the right of D_{2} There are also two parallel upward sloping supply curves, labeled and S 1 S 2 .S 1 is above and to the left of S_{2} These four lines intersect at four points. Point A is the left-most point, which is the intersection of S_{1} and D_{2} Point B is the uppermost point, which is the intersection of and S_{1}; D_{1} . Point C is the right-most point where S_{2} and D_{1} intersect. And point D is the lowest point where and S_{2}*D_{2} intersect. The French fall in love with California wines and triple their purchases of this beverage. Assuming all else remains constant, this would be represented as a movement from O B to A O C to D O C to B O D to A O D to C

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