A country’s terms of trade rose from a base-year figure of 100 to 120 in the next year. If export prices had gone up by 50 %, what change occurred in the price of the country’s imports?
- A–30 %
- B–25 %
- C+25 %
- D+30 %
Economics 9708 · AS & A Level · 6.3
Economics 9708 · AS & A Level · 6.3
A country’s terms of trade rose from a base-year figure of 100 to 120 in the next year. If export prices had gone up by 50 %, what change occurred in the price of the country’s imports?