1. In the diagram for this exercise, sketch demand and supply curves to represent the market for exchanging British pounds for U.S. dollars to illustrate an equilibrium exchange rate of $1.50 per pound for a volume of exchange of 500 million pounds.

2. In the diagram, sketch demand and supply curves to represent the market for exchanging British pounds for U.S. dollars to illustrate an equilibrium exchange rate of $1.50 per pound for a volume of exchange of 500 million pounds.Then show how the exchange rate could increase to $1.80 with an increase in volume to 600 million pounds.