A Leftward Shift of the Japanese Demand Curve for Foreign

question 154

Multiple Choice

A leftward shift of the Japanese demand curve for foreign exchange will

• A)increase the price of foreign exchange in Japan
• B)decrease the value of the yen
• C)make foreign goods more expensive in terms of yen
• D)make foreign goods less expensive in terms of yen
• E)make Japanese goods less expensive in terms of foreign exchange

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Definitions:

Linear Demand Curve

A graph showing a straight-line relationship between the price of a good and the quantity demanded.

Demand

The quantity of a good or service that consumers are willing and able to purchase at different prices.

Total Revenue

The total amount of money a firm receives from sales of its products or services, calculated by multiplying the price per unit by the total number of units sold.

Price-inelastic

Price-inelastic describes a situation where the demand for a product or service is relatively unresponsive to changes in its price.