Question: Cannot figure out how to identify if supply is schedule a or b and if demand is schedule a or b. Can anyone explain how
In-Class Exercise # 1: Supply / Demand Schedules in the FX Market The table below presents the supply and demand schedules for BP (from the US view point). Price of BP Schedule A Schedule B demanded) 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 1,000,000 (# of BP supplied | (# of BP supplied or or demanded) 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 140 100,0010000 $1.45 $1.50 $1.55 $1.60 $1.65 a) Identify the: Supply schedule: Schedule A / Schedule B Demand schedule: Schedule A/Schedule B b) What would be the clearing price for BP in the foreign exchange market? Why? c) What would happen if both the US and the British governments fixed the price of BP at $145? Excess supply of BP/ Excess demand for BP d) Calculate the excess supply or demand for BP if both the US and the British governments fixed the price of BP at $1.60
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