Several years ago, there was a solar eclipse visible only from a remote part of Mexico (Los Cabos). To view this event, many thousands of tourists went to that remote area. What effect would this event have on the price of pesos in tersm of U.S. dollars

According to the demand and supply economic theory, made popular by Adam Smith in 1776, which provides a price determination model based on the relationship between the amount of a good producers of the good are willing to sell at a given price and the amount of that good that the end users wish to purchase, there is an inverse relationship between price and supply, therefore as the supply decreases, the price increases, and therefore, there is a direct relationship between the demand and price, such that as the demand increases, the price of the goods increases because the ratio of supply to demand is decreased

Given that the arrival of thousands of tourists to the remote Los Cabos, will result in the tourists requiring Pesos, the demand of Pesos will rise, which according to the demand and supply theory, will increase the price of Pesos

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