Neco 2017 Commerce Question 6
Practice objective / multiple choice question 6 from the 2017 Neco Commerce examination.
A country imports \(200{,}000\) tonnes of wheat at \(\$2\) per tonne. The government imposes a \(15\%\) tariff on wheat imports. The price elasticity of demand for wheat imports is \(-0.4\). Assuming the tariff is fully passed to consumers, calculate (i) the percentage change in quantity imported, (ii) the new quantity imported, and (iii) the change in the trade balance in dollars, given that exports are \(\$150{,}000\).
Answer Options
About This Question
This is Neco 2017 Commerce Question 6. It is one of the objective questions from the 2017 Neco Commerce examination.
Difficulty level: Medium .
Master the Exam!
You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.