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How does the exchange rate influence the benefits of trade?
Mutually beneficial international trade arises specified the exchange ratios lie among the internal opportunity cost ratios for every country which is 2 cars for 1 tonne of cocoa as well as one tonne of cocoa for three cars. Therefore the exchange rate influence the benefits of trade.
Calculate point elasticity of demand for demand function Q=10-2p for decrease in price from Rs 3 to Rs 2
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In the absence of taxes, subsidies or other distortions, the market demand and supply for bags of cement would be given by Q D = 1500 - 10P and Q S = 140P, respectively, where Q
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