Given the Following Table Showing Various $/£ Exchange Rates and the Respective

question 5

Multiple Choice

Given the following table showing various $/£ exchange rates and the respective
Quantities of pounds demanded by U.S. buyers:
$\begin{array} { c c } \$ / £ & \text { pounds demanded } \\\hline \$ 2.50 / £ 1 & £ 1,000 \\\$ 2.00 / £ 1 & £ 1,500 \\\$ 1.50 / £ 1 & £ 1,800\end{array}$
The demand for pounds between $2.00/£1 and $1.50/£1 is

• A) elastic.
• B) unit-elastic.
• C) inelastic.
• D) elastic, unit-elastic, or inelastic - cannot be determined without more information.

---

Definitions:

Exports

Goods or services sold by a country to buyers in other countries, contributing to the exporting country's gross domestic product.

Imports

Items or services transferred into a country from a foreign location to be sold.

Trade Surplus

A condition where a country's exports exceed its imports, indicating a positive balance of trade.

Exports

Products or services shipped from one nation to another for the purpose of being sold or exchanged.