Figure 1510 Alt Text for Figure 15

question 131

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.The Chinese government pegs the yuan to the Canadian dollar, at one of the specified exchange rates on the graph, such that it overvalues its currency.Using the figure above, this would generate

• A)a shortage of yuan equal to 500 million.
• B)a shortage of yuan equal to 100 million.
• C)a surplus of yuan equal to 200 million.
• D)a surplus of yuan equal to 700 million.
• E)a shortage of yuan equal to 600 million.

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Definitions:

Fixed Cost

Costs that remain constant regardless of the amount of goods produced or sold, like lease payments, employee wages, and insurance fees.

Expansion Options

Strategic choices available to a business to increase its size, offerings, or operational capacity.

Minimizes Cost

The process or approach aimed at reducing expenses and spending to the lowest possible level.

Central Hub

Central hub refers to a focal point or a core center where activities, processes, or networks converge, often used to optimize distribution or communication.