Waec Model Questions Vol1 2020 Economics Question 16
Practice objective / multiple choice question 16 from the 2020 Waec Model Questions Vol1 Economics examination.
Nigeria's nominal exchange rate changes from ₦360 per US$ to ₦400 per US$. During the same period the domestic consumer price index rises from 120 to 130 (base 100) while the foreign price index falls from 110 to 105. (i) Calculate the percentage change in the real exchange rate. (ii) If the price elasticity of export demand with respect to the real exchange rate is -0.5 and the country's initial export volume is 500,000 US$, estimate the new export volume after the exchange‑rate movement. (iii) Using the new nominal exchange rate, determine the change in Nigeria's export earnings in Naira (rounded to the nearest Naira).
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About This Question
This is Waec Model Questions Vol1 2020 Economics Question 16. It is one of the objective questions from the 2020 Waec Model Questions Vol1 Economics examination.
Difficulty level: Hard .
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