Part 1: Use the line and double-drop line tools to draw a graph depicting the demand for and supply of U.S. dollars with the exchange rate expressed as pesos per dollar. Label all curves. Plot and label the equilibrium (E1).
Part 2: Suppose Mexico begins to increase its exports of oil to the U.S. Show what happens in the market for dollars assuming all else remains equal. Use the double-drop line tool to plot and label the new equilibrium (E2). Label all curves and points appropriately.