At which of the following exchange rates would the quantity of British pounds demanded be the highest?
A) $5.00 per pound.
B) $2.50 per pound
C) $3.00 per pound.
D) $1.50 per pound.
E) $2.00 per pound.

Question

Quizplus · Accepted Answer

The quantity of British pounds demanded would be highest at the lowest exchange rate, $1.50 per pound, because it is cheaper for buyers to purchase pounds, increasing demand.

At Which of the Following Exchange Rates Would the Quantity