In the above figure, suppose the value of the European euro is P1 and U.S. demand for French wine declines. The effect on the euro can be shown by
A. the decrease in the value of the euro to P0.
B. an increase in the value of the euro to P2.
C. a shift in the demand for euros from D1 to D0, but no change in the value of the euro.
D. the excess demand of euro equal to Q3 - Q1.
Answer: A
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