Post Utme Nile University 2024 Economics Question 11
Practice objective / multiple choice question 11 from the 2024 Post Utme Nile University Economics examination.
Consider a small open economy with a fixed exchange rate. The country's import demand function is given by \( MD = 100 - 2P \), where ( P ) is the price of imports in domestic currency. The country's export supply function is given by \( ES = 50 + 3P \). Assuming the initial price of imports is 50, calculate the initial trade balance and the change in trade balance if the price of imports increases by 10.
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About This Question
This is Post Utme Nile University 2024 Economics Question 11. It is one of the objective questions from the 2024 Post Utme Nile University Economics examination.
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