Economics (AS & A Level) · May / June 2022 · Paper 12 · Question 24

The table gives different combinations of possible values for a country's price elasticity of demand for exports and price elasticity of demand for its imports. Following the devaluation of the country's currency, under which combination of elasticities would the country's balance of payments on the current account worsen?

1. A0.3 / 0.3
2. B0.2 / 0.9
3. C0.6 / 0.5
4. D1.2 / 1.2

As printed in the paper