Question: Use the graph to answer the question that follows. The graph shows a horizontal axis labeled Quantity of euros and a vertical axis labeled Dollars

Use the graph to answer the question that follows. The graph shows a horizontal axis labeled Quantity of euros and a vertical axis labeled Dollars per euro. Values along the horizontal axis from left to right are Q 1, Q, Q 2. Values along the vertical axis from top to bottom are P 2, P, P 1. A downward sloping line, D, intersects an upward sloping line, S, at point Q, P. Based on the graph, if one euro is sold at price lower than the equilibrium exchange rate, then which of the following holds true in the foreign exchange market? (3 points) There will be excess demand for euros (Q - Q2) at P2. There will be excess demand for euros (Q2 - Q1) at P1. There will be excess supply of euros (Q1 - Q) at P. There will be excess supply of euros (Q2 - Q1) at P1. There will be excess demand for euros (Q2 - Q) at P2. 9

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