Trade Balance and the Exchange Rate | |
| The Input Parameters | |
|
Price Elasticity of Demand for Imports |
0.30 |
|
Price Elasticity of Demand for Exports |
0.40 |
|
Original Quantity of Imports (£) |
14.00 |
|
Original Quantity of Exports (Q) |
8.00 |
|
Percentage change in the exchange rate (%) |
-8.00 |
| Outputs | |
|
Original Trade Balance (£) |
-6.00 |
|
New Quantity of Imports (£) |
11.60 |
|
New Quantity of Exports (£) |
11.20 |
|
New Trade Balance (£) |
-0.40 |
|
Growth Rate of Imports (%) |
-20.69 |
|
Growth Rate of Exports |
28.57 |