Refer to the Figure Below

question 125

Multiple Choice

Refer to the figure below. Suppose the solid line represents the current supply of Star Wars action figures. If the price of the plastic used to make action figures rises, current supply will:

• A) shift to S(B).
• B) not change because a change in the price of plastic will not affect the demand for action figures.
• C) shift to S(A).
• D) not change; only the quantity supplied will change.

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Definitions:

U.S. Dollars

The currency of the United States, widely used as a benchmark and reserve currency around the world.

Currency Market

Also known as the foreign exchange market, it's a global decentralized market for the trading of currencies.

Supply of British Pounds

The total amount of British pounds (GBP) available for transactions and investment in the currency markets.

Appreciation

An increase in the value of an asset, currency, or other financial instrument over time.