A Singapore's demand for China's imports will shift up by 10%, leading to a new equilibrium at point B B) Singapore's demand for China's imports will shift down by 10%, leading to a new equilibrium at point C Singapore's demand for China's imports will remain unchanged, the equilibrium stays at point A. China's demand for Singapore's imports will shift down by 10%, leading to a new equilibrium at point C.
A Singapore's demand for China's imports will shift up by 10%, leading to a new equilibrium at point B B) Singapore's demand for China's imports will shift down by 10%, leading to a new equilibrium at point C Singapore's demand for China's imports will remain unchanged, the equilibrium stays at point A. China's demand for Singapore's imports will shift down by 10%, leading to a new equilibrium at point C.
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Transcribed Image Text:Singapore's demand for China's imports will shift up by 10%, leading to a new equilibrium at point B
B Singapore's demand for China's imports will shift down by 10%, leading to a new equilibrium at point C
Singapore's demand for China's imports will remain unchanged, the equilibrium stays at point A.
China's demand for Singapore's imports will shift down by 10%, leading to a new equilibrium at point C.
Transcribed Image Text:The figure below shows Singapore's demand and supply curves for China's imports. Suppose at the initial exchange rate,
R=SGD/RMB=0.2, the import market equilibrium is given by point A. When SGD depreciates by 10%,
PM in RMB
SM
B
1.1
1
0.9
A
1 2 3
D'M
DM
D'M
QM
(in Billions)
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