A-LevelEconomicsExchange RatesMay/June 2015Paper 1 Q281 Mark
An appreciation of country X's currency leads to an increase in its foreign currency earnings from tourism. What can be concluded from this about the demand by foreigners for holidays in country X?
AIt is income elastic.
BIt is price elastic.
CIt is income inelastic.
DIt is price inelastic.
✓ Correct Answer
The correct answer is D. This question tests the candidate's understanding of exchange rates within the Economicssyllabus. The examiner's mark scheme requires...
📋 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...
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