After a Revaluation, All Other Things Equal, Exports Will Likely

question 109

Multiple Choice

After a revaluation, all other things equal, exports will likely _____ and imports will likely _____.

• A) increase; increase
• B) decrease; decrease
• C) increase; decrease
• D) decrease; increase

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Definitions:

Third-Degree Price Discrimination

A pricing strategy where a seller charges different prices to different consumer groups based on their elasticity of demand.

Profits Maximization

Aiming to achieve the highest possible profits through decision-making related to business operations and finance.

Price Elasticity

A measure of how much the demand for a good or service changes in response to a change in its price.

Marginal Cost

The extra expense associated with manufacturing an additional unit of a product or service.