A-LevelEconomicsInternational Trade & Global EconomyOct/Nov 2022Paper 1 Q261 Mark
Following a 10% depreciation in the $ value of the £ sterling, a UK exporter leaves the $ price of the goods it sells in the US market unchanged. Other things being equal, what will be the effect on the revenue measured in sterling obtained by the manufacturer from its sales in the US?
AIt will increase.
BIt will decrease.
CIt will be unchanged.
DIt will depend on the elasticity of demand for the manufacturer's good in the US.
✓ Correct Answer
The correct answer is A: It will increase.
📋 Examiner Report & Trap Analysis
Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...
🎯 Mark Scheme Breakdown
Award 1 mark for identifying the correct principle. Award 1 mark for showing clear working. Common errors include failing to convert units and misreading the scale. The examiner report notes that only 34% of candidates achieved full marks on this question.
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