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The Figure Given Below Depicts the Demand and Supply of Brazilian

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The figure given below depicts the demand and supply of Brazilian reals in the foreign exchange market.Assume that the market operates under a flexible exchange rate regime. Figure 22.1 The figure given below depicts the demand and supply of Brazilian reals in the foreign exchange market.Assume that the market operates under a flexible exchange rate regime. Figure 22.1   In the figure: D<sub>1</sub> and D<sub>2</sub>: Demand for Brazilian reals S<sub>1</sub> and S<sub>2</sub>: Supply of Brazilian reals -Refer to Figure 22.1.Suppose the initial equilibrium exchange rate is 10 pesos per real.A decrease in the Mexican demand for Brazilian coffee,other things equal,is most likely to result in a new equilibrium exchange rate of: A) 6 pesos per real and an equilibrium quantity of 200 Brazilian reals. B) 6 pesos per real and an equilibrium quantity of 250 Brazilian reals. C) 8 pesos per real and an equilibrium quantity of 150 Brazilian reals. D) 8 pesos per real and an equilibrium quantity of 100 Brazilian reals. E) 10 pesos per real and an equilibrium quantity of 200 Brazilian reals. In the figure:
D1 and D2: Demand for Brazilian reals
S1 and S2: Supply of Brazilian reals
-Refer to Figure 22.1.Suppose the initial equilibrium exchange rate is 10 pesos per real.A decrease in the Mexican demand for Brazilian coffee,other things equal,is most likely to result in a new equilibrium exchange rate of:

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