Final answer:
The correct answer is a) supplied, sellers. The reason being that when the price of euros is below equilibrium, it leads to an excess supply of euros, and to correct this, sellers will compete, causing the price to adjust back towards the equilibrium level.
Step-by-step explanation:
If the dollar price of euros is lower than the equilibrium price, there will be an excess quantity of euros at that price, leading to competition among euro sellers which will push the price of Euros toward equilibrium. The correct choice is a) supplied, sellers.
When the price of a currency such as the euro is below the equilibrium price, the quantity of euros supplied by sellers exceeds the quantity demanded by buyers at that price point. This situation creates excess supply. To eliminate this excess supply, sellers will begin to lower their prices to make the euros more attractive to potential buyers, driving the price up towards the equilibrium level where the quantity of euros supplied equals the quantity demanded.
This scenario is similar to what occurs in new exchange rate equilibriums as noted in the provided information where a shift in demand and supply for U.S. dollars leads to a new equilibrium price on the foreign exchange market. In the case of the euro, a similar mechanism occurs where market forces will eventually push the exchange rate back to where the market clears.