International trade and free trade — practice question

Which pairing of export prices and import prices would produce the largest shift in a country’s terms of trade?

• Aexport prices decrease by 1%; import prices increase by 1%
• Bexport prices decrease by 2%; import prices no change
• Cexport prices increase by 1%; import prices decrease by 1%
• Dexport prices no change; import prices increase by 2%