Domestic and foreign currency values of exports

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You are given the following information: Quantity of exports 600

Domestic currency price of exports 15

Exchange rate (d/f) 1.25

i. Calculate the domestic and foreign currency values of exports.

ii. What will happen if the exchange rate falls to 1.10, assuming that the value of the elasticity of demand for exports is -0.2? Provide your final answers to 2 decimal points.

Reference no: EM132538856

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