Economics 9708 · AS & A Level · 6.3

6.3 — practice question

The table gives the average prices of exports and imports. Which pair of changes in export prices and import prices could cause a country’s terms of trade to rise from 100 to 110?

  • Aexports: falls by 5%; imports: rises by 5%
  • Bexports: remains unchanged; imports: rises by 10%
  • Cexports: rises by 5%; imports: falls by 5%
  • Dexports: rises by 10%; imports: remains unchanged

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