Let the demand and supply of Philippine pesos each month be described by the following equations: Demand

Question:

Let the demand and supply of Philippine pesos each month be described by the following equations:
Demand for pesos = 100 - 2000e
Supply of pesos = 20 + 3000e
where the quantities are millions of pesos, and e is dollars per peso.
a. Find the equilibrium exchange rate.
b. Suppose the Philippine central bank wants to fix the exchange rate at 50 pesos per dollar and keep it there. Should the Philippine central bank buy or sell its own currency? How much per month?

Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...

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