Figure 31-2 In the graph, MS represents the money supply and MD represents money demand. The vertical axis is the value of money measured as 1/P and the horizontal axis is the quantity of money. Draw a graph which shows a vertical line, M S, that extends from point 5000 on the horizontal axis, and two curved lines, M D 1 and M D 2, falling from left to right, with M D 2 lying to the right M D 1. M D 1 intersects M S at (5000, 0.5). M D 2 intersects M S at (5000, 0.875). Refer to Figure 31-2. If the relevant money-demand curve is the one labeled MD1, then the equilibrium value of money is a. 2 and the equilibrium price level is 0.5. b. 0.5 and the equilibrium price level is 2. c. 2 and the equilibrium price level cannot be determined from the graph. d. 0.5 and the equilibrium price level cannot be determined from the graph