The Figure Below Shows the Demand (D) and Supply (S)

question 114

Multiple Choice

The figure below shows the demand (D) and supply (S) curves of cocoa in the U.S.Figure 21.4

-Suppose the price of an ounce of silver is 100 nuevos soles in Peru and $400 in the United States. This implies:

• A)the Peruvian nuevo sol is worth four times the value of a U.S. dollar.
• B)the Peruvian nuevo sol is worth one-fourth the value of a U.S. dollar.
• C)Peru's economy must be four times larger than the U.S. economy.
• D)the U.S. economy must be four times larger than that of Peru.
• E)the U.S. dollar is worth four times the value of a Peruvian nuevo sol.

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