Suppose That Country A's Total Exports Are 10,000 Units of Good

question 17

Multiple Choice

Suppose that country A's total exports are 10,000 units of good X at a price of $20 per Unit, meaning that country A's export earnings or receipts are $200,000. Suppose also That the foreign price elasticity of demand for country A's exports of good X is (-) 0.6. If Country A's prices for all goods, including its exports, now rise by 10% because of a gold Inflow such as in the Mercantilist model, then, other things equal, country A's exports of Good X will fall by __________ and country A's export earnings or receipts will become __________.

• A) 600 units; less than $200,000
• B) 600 units; greater than $200,000
• C) 1,000 units; less than $200,000
• D) 1,000 units; greater than $200,000

---

Definitions:

Subsistence

The means by which an individual or group maintains basic living conditions, often pertaining to the self-provisioning of food and resources.

Genetically Modified

Organisms whose genetic material has been artificially manipulated through genetic engineering, often to achieve traits like pest resistance or improved nutritional content.

Domestication Practices

Involves the taming and breeding of animals or cultivation of plants by humans for food, work, companionship, or other benefits.

Indigenous Peoples

Ethnic groups who are the original inhabitants of a given region or country, maintaining traditions that differentiate them from the dominant post-colonial cultures and societies.