Briefly, what are the major causes of export earnings instability for developing countries?
What will be an ideal response?
Low price and income elasticities of demand leading to erratic movements in export prices.
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As the price of a product falls, the demand for the product increases, ceteris paribus
Indicate whether the statement is true or false
Refer to Scenario 9.1. If Monty places ________ sheep on the commons, Sheb is better off placing ________ on the commons
A) 4; 4 B) 5; 4 C) 5; 5 D) Both A and B are correct.
In a "game," strategies are
A) the reactions of firms to the changes in the economy. B) the laws regulating the industry. C) the plans made by the participants. D) the potential returns the participants may get.
"Income elasticity of demand is always positive." Do you agree or disagree? Explain
What will be an ideal response?