Consider the table below for international transactions between Zambia and the United States of America Exchange Price of Price Quantity Demand Price Price Quantity Supply rate Zambian of of For of Us of US of us of 5/h Export in Zambi Zambian Kwacha Export Export export kwach kwacha export in 5 Export kwacha in S 0.15 100 1500 21 800 0.2 100 1260 21 1200 0.25 100 1000 21 1600 a) Fill in the blank spaces for the missing values in the table above. Show your work. b) Graph the supply and demand for the kwacha, and show the equilibrium exchange rate and equilibrium quantity of kwacha supplied and demanded. c) Briefly explain any two factors that would shift the supply of kwacha curve outwards, and any two factors that would shift the demand for kwacha curve inwards and the effect on the exchange rate under a flexible exchange rate and fixed exchange rate regime.

Consider the table below for international transactions between Zambia and the United States of America Exchange Price of Price Quantity Demand Price Price Quantity Supply rate Zambian of of For of Us of US of us of 5/h Export in Zambi Zambian Kwacha Export Export export kwach kwacha export in 5 Export kwacha in S 0.15 100 1500 21 800 0.2 100 1260 21 1200 0.25 100 1000 21 1600 a) Fill in the blank spaces for the missing values in the table above. Show your work. b) Graph the supply and demand for the kwacha, and show the equilibrium exchange rate and equilibrium quantity of kwacha supplied and demanded. c) Briefly explain any two factors that would shift the supply of kwacha curve outwards, and any two factors that would shift the demand for kwacha curve inwards and the effect on the exchange rate under a flexible exchange rate and fixed exchange rate regime.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter28: International Trade

Section: Chapter Questions

Problem 16P

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