-Refer to the Above Figure

question 71

Multiple Choice

-Refer to the above figure. Suppose E is the original equilibrium. Japanese residents have increased their demand for U.S. goods. This will lead to

• A) a depreciation of the yen and an increase in the quantity of yens sold per week.
• B) a depreciation of the yen and a decrease in the quantity of yens sold per week.
• C) an appreciation of the yen and an increase in the quantity of yens sold per week.
• D) an appreciation of the yen and a decrease in the quantity of yens sold per week.

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Definitions:

Marginal Revenue

The increase in revenue that results from the sale of one additional unit of product.

Profit-maximizing Output

The level of production at which a company achieves the highest possible profit.

Marginal Cost

The rise in overall expenses resulting from the production of an additional unit.

Marginal Revenue

The additional income from selling one more unit of a good; it is the change in total revenue from an additional unit sold.