Figure 1510 Alt Text for Figure 15

question 139

Multiple Choice

Figure 15.10 Alt text for Figure 15.10: In figure 15.10, a graph illustrates the quantity of yuan traded against the exchange rate.
Long description for Figure 15.10: The x-axis is labelled, quantity of yuan traded in millions per day.The y-axis is labelled, exchange rate, Canadian dollar against the yuan.Supply curve S, is a straight line which slopes up from the bottom left corner to the top right corner.Demand curve D, is a straight line which slopes down from the top left corner to the bottom right corner.The curves intersect at point A, (600, 0.13) .Point A, and unmarked points (800, 0.11) , (500, $0.14) , (700, $0.14) , and (400, 0.11) are all connected to their corresponding values on the x and y-axes with dotted lines.
-Refer to Figure 15.10.Suppose the Chinese government decides to abandon pegging the yuan to the Canadian dollar at a rate that overvalues the yuan.Using the figure above, the equilibrium exchange rate would be ________, and Chinese exports to Canada would ________ in price.

• A)$0.11/yuan; decrease
• B)$0.14/yuan; increase
• C)$0.13/yuan; increase
• D)$0.13/yuan; decrease
• E)600 million yuan; increase

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Definitions:

Total Area

The sum of all areas covered by a given shape or surface.

Normally Distributed

Describes a distribution that is symmetric around the mean, bell-shaped, and characterized by its mean and standard deviation.

Mean

The average value of a set of numbers, computed by dividing the sum of these numbers by the count of numbers in the set.

Median

The middle value in a list of numbers, which separates the higher half from the lower half of the dataset.