Euro down in currency exchanges $($April $2024)$

A single Euro bought $$0\mathrm{.}98$ US dollars on the foreign exchange market, down $0\mathrm{.}4\%$ from the previous day's trading and the first time the Euro has not purchased a US dollar. Foreign exchange markets have seen a recent rise in Euro trading as the European Central Bank has lagged other central banks in raising rates. The US dollar continues to be strong buoyed by the US central bank raising interest rates and investors seeking the safe haven of dollar assets in times of global turmoil.

$1-$A$1.$ Construct a market for the European Euro. Label initial supply and demand and exchange rate and quantity with subscript $"1".$ On the vertical axis, set out the price ratio of the Euro in terms of US dollars.

$1-$A$2.$ Set into the market the current actual exchange rate for the Euro in terms of US dollars.

$1-$A$3.$ Return to the market for the European Euro in $(1-$A$1).$ Change the market to reflect changes to the market consistent with information in the article. Label new supply and demand $($if changed$)$ and new exchange rate and quantity $($if changed$)$ with subscript $"2."$

PART B $-$ Sugar is on the table $($December$,2024)$

As talks of federal spending cuts ramp up in Washington, much to the sugar lobby's consternation there is considerable discussion about the direct and highly transparent costs by the federal government to domestic sugar processors. In $2023,$ the US Department of Agricuiture spent $$157$ million buying sugar at above the imported market price of sugar to help domestic sugar producers. The federal program suarantees a minimum price to sugar producers. and under the bizarre arrangement each year the government annualy ends up disposing tons of unused sugar.

$1-$B$1.$ Construct a market for domestic sugar prior to the federal program mentioned in the article. Label initial supply and demand and price and quantity with subscript $"1".$

$1-$B$2.$ In economic terms, state the factor that is changing the domestic sugar market.

$1-$B$2.$ Return to the market for domestic sugar in $(1-$B$1).$ Consistent with information in the article, change the